Rising demand from artificial intelligence infrastructure is reshaping the global memory market, creating long-term supply pressure that is already affecting consumer technology prices worldwide.
The ongoing memory shortage has pushed up component costs, leading to higher prices for devices such as smartphones, laptops, and gaming consoles. A recent report suggests that the gap between supply and demand may continue until 2030.
SK Hynix, one of the largest DRAM suppliers with a 32% global market share and a 57% share in high-bandwidth memory (HBM), is struggling to meet demand from AI data centres. Group Chairman Chey Tae-won stated that resolving the current HBM demand could take 4-5 years, mainly due to the need to secure enough raw materials for silicon wafer production.
However, this increased focus on AI-related memory is unlikely to benefit consumer devices. The shift could result in more than 20% shortage of components for the retail market.
Another report indicates that the shortage may continue until 2027, even as major players like Samsung, SK Hynix, and Micron Technology expand production.
Samsung is planning a 4th fabrication plant at its Pyeongtaek campus, expected to be fully operational by the end of 2027. The company is also building a 5th plant focused on HBM. Meanwhile, SK Hynix has already operationalised its Cheongju facility, and Micron aims to begin mass production by 2027 at its Idaho and Singapore plants. However, these expansions are largely focused on AI memory and may not significantly ease the DRAM shortage.
A report highlights that resolving the shortage would require a 12% annual increase in production, while current plans only indicate a 7.5% rise, offering limited relief.
The impact is already visible in the consumer market. The cost of 16GB LPDDR5X RAM and 1TB UFS 4.1 storage has surpassed that of Snapdragon 8 Elite Gen 5. Companies like Sony have increased prices of PlayStation 5 and PlayStation 5 Pro, while the ROG Xbox Ally X has also seen a price hike in Japan.
Reports suggest Apple may face higher memory costs, potentially impacting device pricing this year. Brands like Vivo and iQOO in China could also increase prices soon. If the shortage continues, more consumer tech brands are expected to follow.
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