SAN FRANCISCO: A global memory chip shortage is driving unprecedented price increases, with the Dynamic Random Access Memory (DRAM) spot prices surging over 600% in recent months as AI infrastructure diverts production capacity from consumer electronics.
Bloomberg reports memory producers including Samsung, SK Hynix, and Kioxia saw shares soar 160% since September while consumer electronics makers plunged 12%. The divide reflects capacity reallocation toward high-bandwidth memory for AI data centers.
DRAM prices jumped 171% year-over-year, with DDR5 spot prices quadrupling since September 2025. Contract prices are projected to rise 55-60% quarter-over-quarter in Q1 2026.
AI servers consume far more memory per system than consumer devices. Each gigabyte of HBM requires approximately three times the wafer capacity of standard DDR5. Data centers will consume 70% of memory produced in 2026, up from historical norms.
Samsung raised 32GB DDR5 module prices to $239 from $149 in September, a 60% increase. Macronix plans a 30% NOR flash price hike for Q1 2026.
Consumer impacts are mounting. Qualcomm shares fell 8% after warning memory constraints will limit phone production. Nintendo dropped most in 18 months on margin pressure warnings. Logitech declined 30% from November peak.
IDC forecasts 5% smartphone sales decline and 9% PC sales drop in 2026. Manufacturers face difficult choices: raise prices significantly, cut specifications, or both.
Memory represents 15-20% of mid-range smartphone bill of materials, 10-15% for flagship devices. TrendForce analysts call it “the craziest time ever” after tracking the sector for 20 years.
Normalization unlikely before late 2027 as manufacturers maintain supply discipline favoring high-margin AI products.
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