Samsung DRAM Capacity Expansion Targets 15% Increase by 2026

Memory buyers face tighter supply as Samsung Electronics plans to boost DRAM production capacity by 15 percent. This expansion targets the severe shortage that has already driven standard DRAM prices up by more than 80 percent in the first half of the year. The move directly addresses the supply-demand imbalance affecting hardware manufacturers and end users who rely on consistent memory availability.

Samsung consolidates assembly to meet rising memory demand

Samsung intends to complete this production line reorganization by the end of 2026. The company is consolidating final assembly operations from Hwaseong Park 2 and Cheonan Park into Hwaseong Park 1. This centralization aims to streamline manufacturing efficiency and reduce logistical complexity across its South Korean facilities.

• DRAM Capacity Increase: 15%
• DRAM Price Increase (H1): over 80%
• Production Consolidation: Final assembly moved from Hwaseong Park 2 and Cheonan Park to Hwaseong Park 1
• Completion Deadline: End of 2026

The expansion strategy relies on utilizing existing empty cleanrooms within Hwaseong Park rather than constructing new facilities. This approach allows Samsung to reduce both construction costs and the time required to bring new capacity online. The company positions this move as a direct response to the urgent needs of key clients like Apple, who currently face higher costs due to US export restrictions on Chinese memory suppliers.

This production increase comes at a time when Apple is reportedly pressuring the US government to relax chip export restrictions. Apple cannot currently purchase low-cost memory chips from Chinese suppliers, which increases its procurement expenses. Samsung's capacity boost provides a pathway to meet this demand while navigating the ongoing geopolitical constraints on the memory supply chain.