May 19, 2026 /SemiMedia/ — The global memory chip market has experienced significant price volatility as artificial intelligence (AI) applications surge. Kye-hyun Kyung, former head of Samsung Electronics’ Device Solutions division and current advisor, predicts that memory chip prices could begin to decline in the second half of next year.

Kye-hyun Kyung noted that China is heavily investing in memory production, which could lead to increased supply and downward pressure on prices. He emphasized that South Korea needs to strengthen its position in the global fabless semiconductor design market to maintain competitiveness against the U.S. and China.

Demand for high-bandwidth memory (HBM) in AI chips has already driven global memory prices sharply higher. As of May 2026, DDR5 prices in Germany had risen 414% compared to July 2025. High prices are also impacting the PC market, with companies like Apple and Dell Technologies accelerating procurement to hedge against further price increases.

At the 285th forum of the National Academy of Engineering of Korea (NAEK), Kye-hyun Kyung stated that Chinese companies are actively expanding memory chip production capacity. If these investments translate into actual output, market supply could increase significantly in the second half of 2027, leading to price easing. Market research projects that global memory wafer capacity could reach 6 million units per month by the second half of 2027.

However, he cautioned that if AI capital expenditures (AI CapEx) yield diminishing returns, major tech companies may scale back expansion plans, potentially affecting future supply-demand balance.