A Hong Kong computer store displays printed articles explaining the global memory chip shortage alongside a price list, helping customers understand the situation amid price hikes for laptops, smartphones, and potentially cars due to the AI industry boom.
Forecasts from Samsung Electronics’ CFO indicate that shortages of digital data storage microchips are likely to worsen in 2027 and remain tight through 2028.
Termed “RAMaggedon” after the RAM components, the shortage is driven by chipmakers focusing on producing high-bandwidth memory (HBM) to meet the high demand for AI applications.
In-Technology Services in Hong Kong’s Wan Chai Computer Centre showcases articles to educate customers on the ongoing situation, with manager Wade Lam aiming to clarify the circumstances for those unaware of the industry dynamics.
Videocom Computer, specializing in custom PCs, has seen a drastic drop in business since the price surge started, with RAM prices soaring from HK$300-400 to HK$1,500 for 16 gigabytes, leading customers to hesitate due to the steep costs.
Market analyst Ellie Wang notes a five to sixfold increase in memory prices for PCs and smartphones compared to a year ago, driven by the AI sector’s profitability benefiting major chip manufacturers like Samsung Electronics, SK hynix, Micron, and newcomer ChangXin Memory Technologies (CXMT) from China.
CXMT, while behind in cutting-edge technologies, aims to leverage the current market conditions to gain advantages in the supply-constrained memory chip market.
Henry Wong, an investment banker in Hong Kong, opted to upgrade his laptop’s RAM instead of purchasing a new one, highlighting how individuals are adapting to the price hikes by seeking alternatives.
The automotive industry is also feeling the impact, with rising costs for in-vehicle computer systems likely to result in higher vehicle prices.
In Tokyo’s Akihabara district, graphic designer Charles Brousse notes exorbitant prices for RAM, graphics cards, and motherboards, affecting his custom PC building service and emphasizing the shift towards cheaper laptops due to the chip shortage.
Brousse expresses concerns about the consumption cycle fueled by shorter product lifespans and rising costs, driven by the AI speculative bubble impacting professions like graphic design.
