September 16, 2025 /SemiMedia/ — Micron Technology has suspended all quotes for its memory products and told distributors it will raise prices by 20% to 30%, according to supply chain sources. The company halted pricing for DDR4, DDR5, LPDDR4 and LPDDR5 chips from September 12, citing an expected supply shortfall and the need to reset pricing.

The move follows Western Digital’s earlier decision to lift memory prices by more than 10%, signaling a new upward cycle in storage chip costs. Analysts say surging investment from cloud service providers, which plan to boost capital expenditure by $18 billion in fiscal 2025, is driving demand for DRAM and NAND used in AI infrastructure. Micron is expected to deliver stronger-than-forecast guidance when it reports fourth-quarter results on September 23.

Demand has shifted toward enterprise NAND, with hyperscale customers placing large orders for data center SSDs. Market tracker TrendForce said NAND wafer prices rose 10% to 15% in the second quarter, while client SSDs increased 3% to 8%. CFM data showed the DRAM price index climbed about 72% in six months.

Micron has also decided to wind down development of mobile NAND, including UFS 5.0, and gradually exit the segment, opening opportunities for Chinese suppliers.

Analysts note that capacity cuts in older DRAM nodes such as DDR4 and LPDDR4X, combined with stronger server demand and a tight HDD market in North America, are fueling the price rally. The supply squeeze is expected to extend into the fourth quarter, underpinning higher prices across the memory sector.