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Tech Confronts a Worsening Memory Crunch as AI Demand Overwhelms Supply

AI datacenter hunger collides with years of underinvestment, leaving little near‑term relief for strained DRAM and NAND markets.

Overview

  • Samsung, SK Hynix, and Micron cannot satisfy both AI datacenters and consumer electronics, pushing memory prices higher with no clear endpoint.
  • Industry experts cite deep production cuts in 2022–2023 and scant investment through most of 2025 as key drivers of today’s shortage.
  • Building new memory fabs requires at least 18 months and more than $15 billion, limiting the speed at which supply can expand.
  • Bloomberg reporting, cited by Wccftech, says shortages are pressuring profits, forcing price hikes or output cuts, and disrupting product roadmaps across PCs, phones, autos, and data centers.
  • Analysts warn consumers should expect pricier devices, while some propose shifting AI tasks to local AI-capable PCs as a potential—though uncertain—pressure valve for cloud demand.