"The DRAM and NAND chips used in PCs, smartphones, and other consumer electronics are experiencing shortages, putting pressure on the overall market, according to a December report from IDC. With the shortages come cost increases for these vital memory chips. That, in turn, will prompt many PC and mobile phone makers to pass along the higher costs to consumers by raising prices on their own products."
"What's behind the shortages? Blame AI. Businesses are scooping up more and more memory for their AI data centers and hardware. These systems require much larger amounts of memory than do conventional PCs and other personal devices. This transition means that fewer memory chips are available for consumer products, creating a shortage and subsequent price increases. Unlike many component shortages, which tend to be cyclical, this one may be here to stay."
DRAM and NAND memory used in PCs, smartphones, and other consumer electronics are in short supply and increasing in cost. AI data centers and hardware are consuming much larger amounts of memory than conventional devices, driving higher demand. Top memory manufacturers Samsung Electronics, SK Hynix, and Micron Technology are reallocating capacity and investment toward high-bandwidth, enterprise-grade memory for cloud and AI vendors. That strategic reallocation reduces the supply available for consumer products and prompts PC and mobile makers to raise retail prices. Android device makers face particular pressure when adding advanced features to affordable phones, while Apple and Samsung are less likely to be affected.
Read at ZDNET
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