Samsung Becomes Apple’s Top DRAM Supplier with Over 60% Share

    According to a report by Korea Economic Daily, Samsung Electronics has emerged as Apple’s largest DRAM supplier, accounting for 60%-70% of the latter’s total demand. This partnership covers not only the existing iPhone 17 series but will also extend to the upcoming iPhone 18 series launching next year.

    Despite its massive scale, Apple is not immune to DRAM supply shortages and price hikes. Earlier reports indicated that Apple’s long-term DRAM supply agreements with Samsung Electronics and SK hynix are set to expire early next year, forcing the tech giant to renegotiate new supply terms and pricing with the two South Korean chipmakers.

    Korea Economic Daily notes that future iPhones will be equipped with DRAM chips from Samsung, SK hynix and Micron. However, Samsung is expected to capture a larger share, and DRAM in most of Apple’s upcoming products may come from a single supplier. While SK hynix maintains a solid position in Apple’s supply chain, the company is shifting its DRAM production capacity to focus on High Bandwidth Memory (HBM), resulting in limited supply of traditional DRAM products. In contrast, to maximize profits, Samsung is considering cutting HBM3E output and ramping up production of conventional DRAM such as DDR5.

    Apple plans to launch the iPhone 18 series in the third quarter of next year, which is rumored to feature six-channel LPDDR5X DRAM—a specification that will significantly boost bandwidth and AI performance. Samsung appears to be the only manufacturer capable of maintaining both the production volume and quality standards of LPDDR5X to meet the demands of its most lucrative customer. Notably, Apple’s DRAM specifications are extremely stringent, exceeding the industry standards set by JEDEC.

    Furthermore, chipsets like Apple’s A19, A19 Pro, as well as next year’s A20 and A20 Pro, prohibit sudden large voltage surges. Samsung’s 12GB LPDDR5X chip measures a mere 0.65mm in thickness, making it one of the slimmest components for mobile devices. It also boasts a 21.2% improvement in thermal resistance and a 25% reduction in power consumption. Thanks to these superior features, Apple has little hesitation when choosing Samsung over alternative suppliers.

    “This is just the beginning. We must meet the deadlines under any circumstances,” a semiconductor industry official stated. “Samsung Electronics has overwhelming production capacity and is the only company capable of meeting Apple’s requirements—especially as SK hynix shifts its focus to HBM.”

For Samsung, the current DRAM shortage and price surge are projected to drive its operating profit to $73 billion in 2026. This is because the price of each 12GB LPDDR5X chip has surged from $30 at the start of the year to $70.

    As the AI era unfolds, Apple’s reliance on Samsung is expected to deepen. This is due to the growing importance of DRAM in smartphones—the iPhone 17 Air, Pro and Pro Max models all come with 12GB LPDDR5X, marking the largest DRAM capacity in iPhone history.

    With LPDDR also being adopted in AI servers, Samsung’s competitiveness is attracting increasing attention. It is reported that Samsung Electronics has secured half of Nvidia’s SOCAMM2 orders for next year, which will require substantial volumes of LPDDR5X chips.