DRAM supply tight as Samsung and SK hynix pivot
The computer memory market faces a prolonged period of high prices and limited supply for standard DRAM, as manufacturers pivot production toward more profitable high-bandwidth memory for artificial intelligence systems. Analysts report that major suppliers, including Samsung, SK hynix, and Micron, are channeling investments toward improving HBM output rather than expanding capacity for conventional memory. This shift is creating a persistent shortage for consumer computing.
This strategic move is driven by the superior margins of AI memory and the significant risks associated with building new fabrication plants. Companies are instead opting to convert existing DRAM production lines to manufacture HBM, a faster and less costly process that further constrains the general memory supply. With new facility construction taking years, no immediate supply relief is expected.
Industry experts consequently anticipate that supply constraints and elevated prices will continue for the foreseeable future. A slow and gradual market recovery is not projected to begin before 2027.
