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Tech Giants Escalate HBM Bids in AI Memory Crunch as ASUS Weighs DRAM Entry

AI demand has choked HBM and LPDDR supply, shifting bargaining power to Samsung and SK Hynix.

Overview

  • Executives from Microsoft, Google and Meta have traveled to South Korea to pursue long-term supply deals with Samsung and SK Hynix, with talks described as difficult.
  • Major buyers are placing open-ended, high-price orders to secure scarce HBM, reinforcing a seller’s market controlled by top memory makers.
  • Google has reportedly dismissed a procurement executive after failing to lock in sufficient HBM, with its TPU program heavily dependent on the technology and a large share sourced from Samsung.
  • ASUS is reportedly preparing to start in-house DRAM production in Q2 2026 to support its TUF and ROG lines, signaling a potential vertical shift to safeguard supply.
  • Price pressures are spilling into consumer products, with reports indicating Apple is paying up to a 230% premium for LPDDR5X memory.