The price of RAM sticks is soaring, stocks are running out, and AI is redesigning the entire production chain. Here’s what’s causing this unprecedented crisis.
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The domino effect of AI on memory production chains
The heart of the problem lies in a shortage orchestrated by massive demand for HBM (High Bandwidth Memory) chips, popular for their ability to handle huge volumes of data in AI applications. These components, expensive to produce and mainly intended for data centers and AI accelerators like Nvidia’s Blackwell GPUs, today monopolize the industrial priorities of giants like Samsung, SK Hynix or Micron. Result: production lines dedicated to consumer memory are put on standby, which dries up the supply of DRAM and drives up prices.
A situation amplified by unstable production and an ultra-concentrated market
Historically, three companies – Samsung, Micron and SK Hynix – control more than 90% of the global DRAM market. This quasi-monopoly makes the market extremely vulnerable to their strategic decisions. Already accused of collusion in the 2000s, these players are now suspected of orchestrating inventory management which primarily serves the most profitable segments, to the detriment of the end consumer. Furthermore, post-Covid saw production slowed down, then poorly readjusted in the face of unpredictable demand, which contributed to the current imbalance.
Concrete consequences: PCs, smartphones and game consoles struggling
The impact goes far beyond the PC world. Manufacturers like HP are lowering the configurations of their laptops while increasing prices. Framework has completely removed certain LPDDR modules from its marketplace. AMD anticipates a 10% increase in its graphics cards. Even game consoles are affected, since their memory components come into direct competition with those of smartphones or AI servers. For consumers, this means a widespread increase in prices, less choice and longer lead times.
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