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DRAM supply crunch could push prices up more than 200% YoY
TechInsights expects DRAM shortages tied to AI data center demand to intensify, with new supply not arriving until late 2027 or early 2028.
The memory-chip industry is facing a tightening supply backdrop as artificial intelligence demand grows, driving sharp price increases and intensifying competition among major DRAM producers, including Samsung Electronics, SK Hynix, Micron Technology, Yangtze Memory Technologies and ChangXin Memory Technologies, according to Yahoo Finance. Dan Kim, chief strategy officer at TechInsights, said AI data centers are consuming rising amounts of DRAM and other memory products, while manufacturers are working to add capacity. He rated current memory-market conditions an eight out of 10 for “craziness” and expects the situation to reach 10, lasting at least through the end of 2027, the Financial Times reported via Yahoo Finance. TechInsights expects DRAM prices to rise more than 200% year over year, calling the move historically unprecedented. Kim also said significant new supply will not come online until late 2027 or early 2028, meaning higher prices will balance demand against limited production. Kim added that “high-bandwidth memory” used with AI accelerators has largely sold out, and shortages are spreading to other memory products. He said allocation limits are increasingly affecting automotive companies, medical-device makers and other traditional customers, even when they accept quoted prices, noting mainstream DRAM is concentrated among Samsung, SK Hynix and Micron and requires advanced manufacturing technology such as EUV lithography.