There's a World Wide Shortage of RAM. Let Me Explain
I never thought the day would come when we would experience a global shortage of RAM. But here we are: the tech industry is facing one of the most disruptive memory shortages in decades. RAM—specifically DRAM—used in PCs, smartwatches, servers, and gaming consoles has become exceedingly expensive and scarce. Let me explain why.
AI is the Primary Culprit
The severe shortage of computer memory is driven primarily by high demand from AI data centers and a sudden shift toward manufacturing high-bandwidth memory (HBM).
AI companies, especially those training large language models, are consuming vast amounts of memory, prompting manufacturers such as Samsung, SK Hynix, and Micron to redirect production toward AI-oriented memory. This is a strategic move after years of oversupply and low prices. The industry as a whole was not prepared for the sudden spike in AI demand. As a result, DDR5 RAM prices have doubled or even tripled. For example, a few months ago, I purchased a Crucial Pro 32GB DDR5 RAM kit for $89.00; it now retails for $427 on Amazon.
The Negative Impact
Noticeably, the shortage is affecting consumers. PC builders and gamers are facing a steep price increase, making upgrades more expensive. Smartphone manufacturers are also forced to adjust. Analysts predict that companies may need to increase smartphone prices, reduce RAM specifications, or both, especially for budget models. Meaning devices expected to ship with 8GB or more may instead ship with lower capacities, reversing years of steady improvement in mobile device performance.
The tech market overall is also feeling the strain. Laptops, tablets, and even gaming consoles are priced higher because manufacturers must pay more for memory.
Looking Ahead and Beyond
The outlook indeed remains uncertain. Micron has warned that the RAM shortage may extend beyond 2026, and some analysts predict disruption pouring into 2027. However, relief will depend on several key factors, including the coming online of new fabrication plants, stabilization of AI demand, and a reset of production between HBM and DRAM. For now, consumers and manufacturers will need to adapt to higher prices and limited supply.
In Summary
The RAM shortage is a structural shift in the semiconductor industry. The rise of AI has significantly altered how memory is produced and who the manufacturer prioritizes and grants full access to. As long as AI companies continue to demand massive amounts of memory, the tech world will have bear the brunt of it. The shortage is reshaping everything from PC building to smartphone design, and its effect will likely be felt in the coming years.
