DDR5 Prices Head Higher Again as LPDDR Shortage Pushes Phone Makers to Recycled DRAM

Contract prices for conventional DRAM continue to climb — DDR5 is set to rise another 10–15% this week — while a deepening LPDDR shortage has smartphone makers harvesting DRAM from end-of-life devices. MLCC lead times have stretched to 52 weeks, and SK hynix has completed a record KRW 40 trillion buyback.

Key takeaways

• DDR5 prices are set to rise another 10–15% within the week, according to a customer alert from US integrator Stince Built.
• LPDDR tightness has some smartphone makers recycling DRAM chips from used devices into entry-level new phones, an Asia supply-chain report says.
• Samsung Electro-Mechanics’ MLCC lead times have stretched to 52 weeks; high-capacitance AI-server parts carry 15–35% price increases.
• SK hynix completed a record KRW 40 trillion buyback on October 21, about a month early; all 24.07 million shares will be retired.
• Montage Technology forecasts Q3 net profit of RMB 1.2–1.3 billion, up 153.6%–174.7% year on year, on higher-generation DDR5 RCD chips.

DDR5 prices set for another 10–15% increase; LPDDR squeeze drives DRAM recycling

US-based system integrator Stince Built warned customers this week that, according to a notice it said it received from the industry, DDR5 memory prices will rise by a further 10% to 15% within the week.

A parallel development is the deepening LPDDR shortage. According to a recent Asia supply-chain report, sharply higher LPDDR prices and tight availability have led some smartphone makers to recover DRAM chips from end-of-life devices and even plan recycled memory die in entry-level new phones. LPDDR price increases and bottlenecks already forced some vendors to lower production targets in the first half, the report says.

The report attributes the squeeze in part to AI server demand, which keeps absorbing HBM and other high-end memory and crowds out conventional DRAM supply. It also claims the unit-area cost of older 1b-node DRAM now exceeds TSMC N2 wafer costs — unverified, but indicative of how far memory pricing has run.

The recycling process desolders chips from used devices, tests them, and re-solders them onto new boards. Passing a functionality test does not guarantee long-term stability: die already in service for five to six years carries residual failure risk, the report notes.

Phone makers also compete with PC brands for supply: the report says Lenovo, HP and Dell have signed long-term agreements with memory vendors through 2027, leaving others exposed to spot-price swings.

Samsung Electro-Mechanics MLCC lead times stretch to 52 weeks

The component shortage is no longer confined to memory. Korean media reported on October 20 that the delivery lead time for multilayer ceramic capacitors (MLCCs) from Samsung Electro-Mechanics has stretched to 52 weeks, meaning customers placing orders today may wait a year for delivery.

Major customers are signing supply contracts for next year to secure allocation, and Samsung Electro-Mechanics has disclosed roughly KRW 2.4 trillion in MLCC-related orders so far this year.

AI servers, which use more than ten times the MLCC content of a standard server, are the demand driver; tightness has spread to low-capacity and automotive grades. Samsung Electro-Mechanics’ component division ran at 91% utilization in the first half of 2026, and new capacity at its Philippines plant is not expected to reach mass production until after 2027.

Murata, Taiyo Yuden and Samsung Electro-Mechanics have all raised prices, with high-capacitance AI-server MLCCs up roughly 15% to 35%, consistent with industry tracker data on 2026 MLCC pricing.

SK hynix completes record KRW 40 trillion buyback; Samsung spent KRW 15 trillion

SK hynix completed its share buyback on October 21, about a month ahead of schedule, according to Korean media reports based on the company’s disclosure. The program repurchased 24.07 million shares for KRW 40.00434 trillion — roughly 3.3% of issued stock, the largest share retirement ever by a Korean listed company — and all of them will be cancelled.

Samsung Electronics had already repurchased 56.85 million shares for about KRW 15 trillion between August 24 and October 6. In total, the two memory makers spent over KRW 55 trillion on buybacks in two months; because the shares are retired rather than held as treasury stock, earnings per share rises mechanically, and Korean market coverage says the buying helped steady the KOSPI amid heavy foreign selling. SK hynix is expected to detail further shareholder returns at its October 28 earnings release.

Montage Technology forecasts Q3 net profit up to 175% on DDR5 RCD ramp

Montage Technology (688008.SH) said on October 20 that it expects third-quarter 2026 revenue of about RMB 2.079 billion, up roughly 46.0% year on year, and net profit attributable to shareholders of RMB 1.20–1.30 billion, up 153.6%–174.7%.

The interconnect chip line remains the growth engine: expected segment revenue of RMB 2.047 billion is about 98.5% of the total, and a richer mix of third-, fourth- and fifth-generation DDR5 register clock driver (RCD) chips lifted the segment’s gross margin to 68.0%–68.5%. The company credits accelerating AI inference and agent applications, which are driving server CPU and memory-module demand, and expects further growth in the fourth quarter. The forecast is preliminary and unaudited.

Samsung and SK hynix prepare next-generation DRAM with High-NA EUV

Memory makers are simultaneously positioning for the next technology node. The newly appointed head of Zeiss Korea said the company has completed preparations for wafer-fab investments by Samsung Electronics and SK hynix in Korea, and will focus on high-precision optical and metrology systems for High-NA EUV lithography.

High-NA EUV raises the numerical aperture of lithography systems from 0.33 to 0.55, improving resolution for advanced DRAM scaling; the industry expects volume production within two to three years. Zeiss’s early positioning signals that the major memory makers are preparing equipment and supply chains for next-generation DRAM and HBM, with competition shifting toward lithography, metrology, process integration and yield control rather than capacity alone.

Near term, High-NA EUV will not change the DRAM supply-demand balance. The more relevant supply variable is allocation: if Samsung, SK hynix and Micron steer advanced capacity toward HBM and server DRAM, additions to conventional DRAM supply could be constrained. For Chinese memory makers, the challenge is to keep upgrading DRAM nodes, improve yields and expand share in DDR5, server memory and HBM — factors that will shape the global competitive landscape.

Sources

• Hankyung, October 21, 2026 — SK hynix wraps up KRW 40 trillion buyback a month early (based on KRX disclosure) — https://www.hankyung.com/article/2026102165657
• Yonhap News TV, October 21, 2026 — SK hynix’s large-scale share buyback ends — https://www.yonhapnewstv.co.kr/news/MYH202610212201069DK
• CLS.cn / Star Market Daily, October 20, 2026 — Montage Technology Q3 net profit forecast up over 150% — https://www.cls.cn/detail/2510177
• Eastmoney, October 20, 2026 — Montage Technology Q3 2026 forecast (disclosure-based coverage) — https://finance.eastmoney.com/a/202610203901521754.html
• BigGo Finance (carrying the Korean media report), October 21, 2026 — Samsung Electro-Mechanics MLCC lead times stretch to 52 weeks — https://finance.biggo.com/news/bb7b3d46-26a6-42d1-8bc3-7ac7785d8c28
• NextPCB 2026 supply-chain risk tracker (citing TrendForce) — Q4 2026 conventional DRAM contract price outlook of +10–15% QoQ — https://www.nextpcb.com/electronic-component-shortage-tracker-2026

FAQ

Why are smartphone makers recycling DRAM chips?

According to the Asia supply-chain report, sharply higher LPDDR prices and tight supply have already forced some phone makers to cut production targets, and are now pushing them to recover and requalify DRAM from end-of-life devices. The report links the shortage to AI server demand absorbing HBM and other high-end memory. Recycled die that has been in service for five to six years carries residual reliability risk, it notes.

How tight is the MLCC market right now?

Korean media reported on October 20 that Samsung Electro-Mechanics’ MLCC lead times have reached 52 weeks, meaning some customers wait a year for delivery. AI servers use more than ten times the MLCC content of standard servers, and the shortage has spread from high-capacitance parts to low-capacity and automotive grades. New capacity, including Samsung Electro-Mechanics’ Philippines expansion, is not expected to reach mass production before 2027.

What do the Korean memory makers’ buybacks signal?

SK hynix completed a KRW 40 trillion repurchase on October 21, roughly a month early, and will cancel all 24.07 million shares — about 3.3% of issued stock, the largest such retirement by a Korean listed company. Samsung Electronics spent about KRW 15 trillion on its own buyback between August 24 and October 6. Retiring the shares mechanically lifts earnings per share, and Korean market coverage says the buying helped support the KOSPI amid heavy foreign selling.

Will DDR5 and conventional DRAM prices keep rising?

Near-term signals point that way: the Stince Built alert cited a further 10–15% DDR5 increase within the week, and industry trackers including TrendForce forecast conventional DRAM contract prices rising 10–15% quarter on quarter in Q4 2026. Whether the trend persists depends on how much advanced capacity Samsung, SK hynix and Micron allocate to HBM and server DRAM versus conventional products — an allocation decision that remains uncertain.