Printed articles discussing the global memory chip shortage are prominently displayed alongside a pricing list at a computer store in Hong Kong, providing clarity to customers experiencing the impact. The surge in prices for items like laptops and smartphones, with the possibility of cars being affected next, is a troubling consequence of the AI industry’s rapid growth, and the supply constraints show no sign of easing.
According to Samsung Electronics’ chief financial officer, the shortage of microchips essential for storing digital data is expected to worsen in 2027 and remain tight until 2028. This scarcity, dubbed “RAMaggedon” after the widely used RAM components, is a result of chip manufacturers shifting focus to high-bandwidth memory (HBM) to meet the escalating demand for AI training and processing tools.
The articles on view at In-Technology Services in Hong Kong’s Wan Chai Computer Centre aim to educate customers who are puzzled by the situation, as explained by manager Wade Lam. The shops in the center offer a range of tech products, including computer parts, gadgets, and gaming consoles.
Business at Videocom Computer, specializing in custom-built PCs, has halved since the price hikes started in September, shared manager Ken Tam. The cost of 16 gigabytes of RAM has surged from HK$300-400 ($40-50) to HK$1,500, leading customers to either make the purchase if necessary or delay buying due to the steep prices.
Market analyst Ellie Wang from TrendForce noted a significant increase in memory prices for PCs and smartphones, with prices up to five to six times higher compared to a year ago. The AI industry’s success has driven substantial profits and stock price gains for major memory chip manufacturers like Samsung Electronics, SK hynix, and Micron.
ChangXin Memory Technologies (CXMT), now mainland China’s most valuable company following its market debut in Shanghai, ranks fourth among memory chip makers. Despite being a newcomer, CXMT is still catching up in terms of cutting-edge technologies, according to James Zhao from Omdia.
In a different part of Hong Kong, customer Henry Wong, an investment banker, opted to upgrade the RAM in his old laptop instead of purchasing a new one with superior specifications. He found that the memory upgrade significantly improved his laptop’s performance, eliminating the need for a new computer.
Automakers are also grappling with increasing costs for in-vehicle computer systems, which may lead to higher vehicle prices in the near future. In Tokyo’s Akihabara district, Charles Brousse, a graphic designer and custom PC builder, highlighted the exorbitant prices of RAM, graphics cards, and motherboards. The chip shortage is prompting individuals to opt for more affordable laptops over desktops, which can last for many years.
Brousse, who runs a service called “PC & Chill,” where clients provide parts for him to assemble, expressed concerns about the impact of the speculative AI bubble on his profession as a graphic designer. He emphasized that the chip shortage is driving consumers towards products with shorter lifespans, fostering a cycle of consumption.