DRAM suppliers are the new Santa Claus, HBM is a 'black hole' for DRAM production capacity

DRAM suppliers are the new 'Santa Claus' says Etron chairman, adding that HBM has become a 'black hole' for DRAM production capacity.

DRAM suppliers are the new Santa Claus, HBM is a 'black hole' for DRAM production capacity
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Gaming Editor
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2 minutes & 15 seconds read time
TL;DR: DRAM suppliers like Samsung, SK hynix, and Micron control chip allocation amid tight production capacity, driven by surging AI demand for HBM memory. This has caused widespread shortages and soaring prices in consumer PC products, with supply constraints expected to persist until at least 2028.

DRAM suppliers are truly the new Santa Claus as they pick and choose who they're providing chips to, with HBM being a "black hole" to DRAM production capacity says the chairman of Etron.

DRAM suppliers are the new Santa Claus, HBM is a 'black hole' for DRAM production capacity 33
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Etron is a famous Taiwanese IC company that specializes in DRAM and SoC design, with its chairman, Lu Chao-Chun, who has said that DRAM giants Samsung and SK hynix are the new "Santa Claus". He added that memory customers are now "grateful" for even getting supply allocated, which is one of the reasons he calls Samsung, SK hynix, and Micron the new "Santa Claus".

Etron's chairman says that one of the main reasons the DRAM supply chain has been completely disrupted is from a few years ago, where DRAM manufacturers weren't worried about increasing production capacity, as demand was at a new all-time low because of the COVID-19 pandemic.

Once things had calmed down, the main aim for DRAM suppliers was to make their profits back, which is why expansion hasn't been a priority. But, in the new AI-focused world that has been experiencing unstoppable demand, boosting production capacity isn't something that can happen overnight, it could take many, many years.

DRAM shortages have been heavily driven because of the AI industry, as NVIDIA, AMD, and other AI chip makers have been tripping over themselves trying to secure HBM. In comparison, general-purpose DRAM products are easier to make, as HBM needs many more modules on-board, which is why most of the DRAM demand is because of the AI sector.

However, the average consumer -- gamers, general users -- are suffering, as the DRAM supply constraints are hitting PC products like RAM, laptops, graphics cards, and virtually anything else that uses DRAM. We have been told to expect high prices and DRAM shortages through until 2028, which is just depressing, and we're still years away from any relief.