Global memory chip prices are poised for a substantial increase as major manufacturers shift production to meet booming demand from the artificial intelligence sector, potentially raising costs for future consumer electronics.
Samsung, a leading memory chip producer, is pushing for price hikes of 30% to 60% on its DDR5 RAM for large business clients. These are wholesale adjustments, not retail prices.
Reuters reported that a 32GB DDR5 module is expected to reach approximately $239. This marks a 50% jump from its price in recent months.
Similar price increases are anticipated for 16GB and 128GB DDR5 capacities. These changes reflect an ongoing volatile market trend for memory components.
The primary driver for these rising prices is the extensive investment by tech giants in expanding data centers. These expansions are crucial for supporting numerous new artificial intelligence features.
Data centers require vast quantities of specialized High Bandwidth Memory (HBM). HBM is essential to power AI accelerators, such as graphics processing units (GPUs).
HBM is a type of RAM specifically designed for extremely high data bandwidth and low latency. These characteristics are critical for efficient AI processing.
The surging demand for HBM in the business sector has prompted major DRAM manufacturers, including Samsung, Micron, and SK Hynix, to reallocate their production capabilities. They are focusing on these highly profitable HBM orders.
This strategic shift is leading to a potential shortage of standard memory chips for the consumer market. It could result in higher prices for new smartphones, personal computers, and game consoles.
These consumer devices heavily rely on advanced RAM and graphics processing units. The impact could be long-term due to multi-year business contracts for memory components. Even older DDR4 RAM modules may eventually experience price increases.