How RAM Shortages Are Slowing Down Your Computer
▼ Summary
– Memory suppliers are prioritizing DRAM production for AI data centers over consumer products, causing a shortage and price increases for devices like PCs, smartphones, and gaming consoles.
– Three companies (Samsung, SK Hynix, and Micron) control 93% of the global DRAM market and are reporting record profits, showing little urgency to lower prices or significantly boost general supply.
– This shift is leading to higher consumer device costs, with manufacturers warning of price hikes, reducing memory in devices, or using cheaper components to manage costs.
– The AI boom also consumes high-bandwidth memory (HBM) and silicon wafers at a much higher rate than standard DRAM, further straining production capacity for consumer goods.
– Industry analysts predict the memory shortage and high prices will persist into 2026 and possibly late 2027, as major suppliers focus on long-term profitability over rapid expansion to meet consumer demand.
The current surge in artificial intelligence is creating a significant shortage of computer memory, leading to higher prices and potential delays for everyday electronics. This RAM shortage is slowing down more than just PC builds; it’s poised to increase costs for smartphones, laptops, and gaming consoles as manufacturers grapple with limited supply. The core issue is a massive shift in priority by the world’s leading memory producers, who are now dedicating a huge portion of their output to powering AI data centers.
A handful of companies dominate the global DRAM market, with Samsung, SK Hynix, and Micron collectively controlling over ninety percent of production. These firms are currently enjoying record-breaking profits, largely fueled by the insatiable demand from AI developers. Data centers require enormous amounts of both standard DRAM and a specialized, high-performance variant called High-Bandwidth Memory (HBM). Producing HBM consumes manufacturing resources at a much higher rate, leaving fewer materials available for the memory chips that go into consumer devices.
The financial incentives are undeniable. Micron recently reported quarterly revenue exceeding eleven billion dollars, while SK Hynix saw its net profit more than double in a year. In a telling move, Micron is winding down its well-known consumer brand, Crucial, to better focus on supplying AI companies. An industry analyst starkly summarized the situation: “If you are not a server customer, you will be considered a second priority for memory vendors.” This reallocation is having a direct impact on availability and cost for everyone else.
Consumers are already feeling the effects, particularly in the PC gaming market. Prices for memory kits have skyrocketed, with some models seeing costs triple or even quadruple in a matter of months. The ripple effects, however, extend far beyond custom desktops. Analysts predict fewer smartphone sales and higher average prices by 2026, with some brands like Xiaomi warning customers of impending hikes. Laptop makers like Dell and HP are planning adjustments, which may include raising prices, reducing the amount of memory in their devices, or cutting costs on other components like batteries and displays.
Even products like solid-state drives (SSDs) are facing similar pressure, as the same companies producing DRAM also make NAND flash storage and are prioritizing AI clients there as well. The upcoming generation of gaming consoles is also a concern, with industry whispers suggesting the anticipated Steam Machine and even the Xbox Series X could see price increases influenced by the memory market.
Despite the clear shortage, the major memory suppliers show little urgency in rapidly expanding production to ease the crunch. They are adopting a cautious strategy, wary of creating an oversupply that could hurt profitability, as happened in 2023. A Samsung representative emphasized a focus on “maintaining long-term profitability” over rapid facility expansion. While SK Hynix has announced plans for new plants, the first won’t be operational until 2027. Current forecasts suggest elevated prices and constrained supply could persist through 2026 and into late 2027.
For anyone planning to buy or upgrade electronics in the near future, the message is clear. The components that power our devices are being diverted to fuel the AI boom, making memory another key factor driving up costs across the entire tech landscape.
(Source: The Verge)
