AI keeps consumer prices high in 'RAMaggedon' chip crunch
Memory chip prices are rising significantly due to artificial intelligence demand. This shortage is impacting consumer electronics and potentially vehicles soon. Chipmakers are prioritizing advanced memory for AI training and operations. Customers face higher costs and are delaying purchases or lowering standards. The crunch is expected to continue through 2028 impacting global markets.
Artificial intelligence is driving up the cost of computer memory, contributing to a global shortage that analysts dub "RAMaggedon." The memory chips, known as RAM or random-access memory, are essential for running AI tools and are in high demand. As chipmakers shift their focus to producing high-bandwidth memory, prices for these components have skyrocketed.
Samsung Electronics' CFO predicts that the shortage will worsen in 2027 and persist through 2028. The price for 16GB of RAM has surged from HK$300 to HK$1,500 in Hong Kong, causing significant pain for consumers and businesses. Car manufacturers are also feeling the impact, with rising costs for in-vehicle computing systems. In Tokyo, graphic designer Charles Brousse notes that the chip shortage has pushed prices for RAM, graphics cards, and motherboards to "ridiculous levels," leading people to opt for cheaper laptops with shorter lifespans.
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- AI keeps consumer prices high in ‘RAMaggedon’ chip crunch straitstimes.com
