Global RAM shortage could last until 2030
What's the story
The global shortage of Random Access Memory (RAM) chips, a critical component in smartphones and computers, is likely to continue for several more years. This is according to Nikkei Asia, which reports that even with increased production efforts from suppliers, manufacturers will only be able to meet 60% of the demand by the end of 2027. The chairman of South Korea's SK Group has even warned that these shortages could persist until 2030.
Production efforts
Memory manufacturers ramping up production
The world's leading memory manufacturers, Samsung, SK Hynix, and Micron, are all working to increase their production capacity. However, almost none of these efforts are expected to come online before 2027 or even 2028. SK Hynix did open a new fabrication facility in Cheongju earlier this year, but it remains the only increase in production capacity among the three companies for 2026.
Demand-supply gap
Demand increase outpacing supply
Nikkei Asia reports that production would have to increase by 12% per year in 2026 and 2027 to meet the growing demand for RAM chips. However, Counterpoint Research indicates that only a 7.5% increase is planned during this period. The new facilities being set up will mainly focus on producing high-bandwidth memory (HBM), which is used in AI data centers.
Market impact
Impact on consumer electronics prices
With companies prioritizing HBM over the general-purpose DRAM used in computers and phones, it's unclear how much these new fabs shall help ease the price crunch on consumer electronics. The RAM shortage has already resulted in price hikes across a range of devices including smartphones, laptops, VR headsets, and gaming handhelds.