From Chips to Carbon: Samsung Hikes Chip Prices, Lands $1.3B Deal in Qatar
Price fluctuations in chips are likely to raise the costs of related products such as smartphones and computers.
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Amid a global chip shortage, Samsung Electronics has raised the prices for certain memory chips by as much as 60% since September, according to Reuters. The decision comes after Samsung delayed the formal announcement of pricing for supply contracts in October, a practice in which pricing details are typically announced each month.
Notably, price changes for chips are expected to increase the costs of other products, such as smartphones and computers.
The South Korean firm’s contract prices for 32-gigabyte (GB) DDR5 memory chip modules increased from $149 in September to $239 in November, according to Tobey Gonnerman, president of semiconductor distributor Fusion Worldwide. The company also increased the prices of 16GB DDR5 and 128GB DDR5 chips by approximately 50% to $135 and $1,194, respectively, and of 64GB DDR5 and 96GB DDR5 by more than 30%.
On Sunday, it separately announced plans to build a new chip production line at its plant in South Korea, aiming to meet the rising demand for AI.
As per Grand View Research, the global data center market size was estimated at $347.60 billion in 2024 and is projected to reach $652.01 billion by 2030.
The company is also expanding rapidly in other sectors.
Meanwhile, on Monday, QatarEnergy LNG awarded a $1.3 billion contract to Samsung C&T for the construction of a large-scale carbon compression and transport facility at Doha’s Ras Laffan Industrial City.
Expected to handle up to 4.1 million tonnes of carbon per year, the plant is positioned to be one of the largest carbon management facilities in the Middle East and a key part of Qatar’s energy transition strategy.
“This contract builds on our extensive track record in Qatar’s major projects,” said Byung-soo Lee, executive vice president and head of the global business development division, Samsung C&T E&C Group. “Together with our solar power initiatives, this project allows Samsung C&T to play a central role in advancing Qatar’s sustainability policies and low-carbon development goals.”
For this, Samsung will leverage its prior experience in major LNG projects in Qatar.
