Demand for DRAM has grown so drastically ahead of supply that manufacturers are now allegedly shifting prices on an hourly basis. Unfortunately, this change is leaving smaller-sized businesses in a difficult bind, with potentially catastrophic consequences.
According to Taiwanese tech outlet DigiTimes, the switch to hourly DRAM pricing extends across Samsung, SK Hynix, Micron, and other smaller memory manufacturers. Worse still, these companies are more frequently requiring prepayment to secure supply.
This naturally gives the largest 100 multinational corporations, including the likes of Apple, Nvidia, and Microsoft, the most leverage, as they have the deepest pockets with which to barter. Meanwhile, an estimated 200,000 small and mid-size businesses will have to fight over the remaining scraps, resulting in untenable bidding wars for many.
In lieu of substantial capital to absorb rising costs, some companies now have no other choice but to “cut losses to survive,” says DigiTimes, or simply shut shop. We’ve seen the effects of this crunch manifest already in rising GPU costs and higher RAM prices. This has consequently affected prebuilt PC prices, as well as reducing Steam Deck availability and other component-dependent devices.
Even larger players in the space have allegedly changed course in the wake of escalating DRAM costs. Rumours suggest the GeForce RTX 60 series won’t see the light of day until 2028 now, while the anticipated RTX 50 Super series is effectively no more than a dream at this point. That’s not forgetting reported delays to the PlayStation 6 and other mainstream electronics devices.
Just when you thought these market conditions couldn’t grow more dire, DigiTimes also reports that DRAM prices could balloon another 70% in this quarter alone. Suffice to say, the worst is sadly still ahead of us, with further price rises likely, despite some fleeting signs of RAM prices dropping occasionally, as retailers look to offload stock.
It’s impossible for DRAM manufacturers to build up additional capacity at a pace quick enough to resolve the supply-demand bottleneck the market currently faces. Like it or not, the only way prices are coming down is through reduced purchases from the biggest spenders, in AI and beyond. I wish I had better advice to give, but for now, join me in settling in for the long haul and holding on to hope.
