Here’s Why RAM Prices Won’t Go Down Anytime Soon.
Nikkei Asia delivered bad news for those hoping for a quick decline in RAM prices: on Friday, the publication reported that the global memory chip shortage will likely persist until around 2027. According to Nikkei, American and South Korean memory suppliers are ramping up DRAM production, but will only be able to meet about 60% of demand. Furthermore, ongoing conflicts in the Middle East are driving up the cost of electricity and other related goods. Even Samsung, which is launching its fourth RAM factory this year, won’t reach full-scale production until at least 2027, and possibly later.
The memory crisis continues.
Part of the problem lies in the division of production needs: Samsung’s fourth plant must also produce logic chips for computing, meaning the company can’t devote all its resources to developing memory chips. And while the company is also building a fifth plant, this one will be dedicated to producing high-bandwidth memory (HMB), a special type of memory used in semiconductors for artificial intelligence. This could reduce demand for more general-purpose RAM, but Nikkei reports that this fifth plant won’t begin operations until 2028. Nikkei reports that memory prices in the first three months of this year rose 90% compared to the previous quarter.
However, there is a silver lining: SK Hynix, the world’s second-largest memory chip maker, is currently producing HBM chips, and has done so since February. SK Hynix also plans to begin production at a new plant in Seoul by February 2027, three months earlier than previously estimated. However, Nikkei reports that this is the only production increase among the three largest memory companies, which include SK Hynix, Samsung, and Micron Technology (based in the US). Micron, in turn, will begin production in Idaho and Singapore in 2027. Collectively, these three companies control 90% of the global DRAM market and are the only companies capable of producing HBM.
Nikkei cites Counterpoint Research, which estimates that these companies will need to increase production by 12% annually through 2027 to address the RAM shortage. Currently, according to the publication, the growth rate is around 7.5%. Therefore, the situation may not return to normal until next year.
Lack of RAM affects everything.
This news is disappointing, especially after the positive developments at the end of March. Back then, we saw a slight decline in RAM kit prices— still significantly above historical lows, but a $30-$45 drop at a time when the world’s largest AI companies were buying up as much RAM as possible. But after the Nikkei report, overall prices are likely to remain stable (or continue to rise) for at least another year and a half.
Unfortunately, this has implications for everything that uses RAM, not just the RAM itself. While those who build or work with computers will notice the strain on RAM hardware, there’s a long list of consumer devices that will also be impacted. Smartphones, laptops, smart glasses, tablets, game consoles, cars: if anything runs on a computer, it uses RAM. Combined with market instability worldwide, expect a simultaneous rise in the prices of the devices you buy. It’s likely this perfect storm that prompted Sony, for example , to raise prices on PlayStation consoles and portable devices .