Rising AI demand puts pressure on memory supply

The ongoing global memory shortage is significantly impacting the consumer technology market, driving up the prices of devices such as smartphones, laptops, and gaming consoles. Reports suggest that the imbalance between supply and demand could continue until 2030. Major memory manufacturer SK Hynix is planning a new fabrication plant, but its focus will primarily be on high-bandwidth memory used in AI data centres rather than consumer devices.

According to SK Hynix Chairman Chey Tae-won, it may take four to five years to meet the growing demand for advanced memory due to challenges in securing raw materials. While companies like Samsung, SK Hynix, and Micron Technology are expanding production, most investments are directed toward AI-focused memory. This shift could worsen shortages in consumer-grade memory, potentially leading to a deficit of over 20 percent in the retail market.

As a result, the prices of key components have surged, affecting the cost of popular devices. For instance, PlayStation 5 and PlayStation 5 Pro have seen price increases, while companies like Apple, Vivo, and iQOO may also raise prices. Experts warn that unless production capacity increases significantly, consumers will continue to face higher prices in the coming years.