DRAM Memory Supply To Experience Shortages As Manufacturers Shift Focus Towards HBM Production

DRAM Memory Supply To Experience Shortages As Manufacturers Shift Focus Towards HBM Production 1

In a turn of events, the DRAM memory industry is expected to witness a chip shortage as the AI & "HBM" hype gobbles up production facilities.

It's both fortunate and shocking that the DRAM markets are in such a state, considering that just a few months ago, companies were facing widespread inventory correction issues, along with dwindling consumer demand; however, it looks like the AI frenzy has rescued this particular segment of the markets as well.

MyDrivers reports that general-purpose DRAM memory chips might see a shortage in the markets as the AI hype forces manufacturers like Samsung and SK hynix to focus on enterprise storage and HBM production, putting DRAM at the backseat.

The capacity utilization rates for DRAM have dropped to an all-time low in the markets, mainly because firms are more focused on catering to the massive demand for high bandwidth memory. Apart from that, companies had already scaled down their DRAM production by a huge margin with the previous condition of the markets, so the sudden increase in demand will already create further problems for firms that were in a state of inventory correction for the last few quarters.

Given that general-purpose DRAM memory chips play a huge role in the PC and mobile segment, the report suggests that a widespread shortage could occur, given that the markets move towards a higher adoption rate. Although we are not yet certain whether a price increase is imminent, a previous report by Morgan Stanley revealed that the prices of memory commodities will soar, as firms are determined to ramp up the selling costs by double digits in percentage in the upcoming quarters, given the fact that the AI hype has brought in tremendous demand.

Well, now might be the best time for companies like SK hynix and Samsung to recover their lost profits from the DRAM markets, but as far as consumers are concerned, memory products could get costly from hereon, hence snag one right away if you see a bargain.