DRAM memory shortages coming, manufacturers are pushing all-in on HBM production for AI chips

The DRAM memory industry is expected to experience a chip shortage as AI chips makers are eating up all of the HBM supply, chewing up production facilities.

1 minute & 8 seconds read time

The continued dominance of the AI market is driving the DRAM memory industry into chip shortages, as the AI and HBM markets eat up all production capacity.

DRAM memory shortages coming, manufacturers are pushing all-in on HBM production for AI chips 82

In a new report from MyDrivers, the general-purpose DRAM memory chip industry might see shortages as the AI hype is forcing DRAM manufacturers like SK hynix and Samsung to all-in with HBM production and enterprise storage, leaving DRAM in a cold, dark room... for now.

The capacity utilization rates for DRAM have stooped to an all-time low in the markets because DRAM manufacturers are too busy enjoying the insatiable demand for HBM. DRAM manufacturers have already scaled down their DRAM production by a "huge margin" from the previous condition of the markets, so the sudden boost in demand will create a domino effect of issues down the road for these companies... that not too long ago were in a state of inventory correction for the last few quarters.

The general-purpose DRAM memory chip market is important for the PC industry as a whole. According to the new report, we could expect worldwide shortages of regular DRAM. We are almost sure this is going to cause a price increase in RAM, whether that's immediate, short-term, or long-term. It's almost inevitable.

If you're in the market for some new RAM for your gaming PC, then I suggest thinking about grabbing a decent kit as soon as you can, especially if prices start skyrocketing. This is just as Intel is about to launch its next-gen Core Ultra 200 series "Arrow Lake" desktop CPUs and AMD with its Zen 5-based Ryzen 9000 series "Granite Ridge" CPUs, all of which require new DDR5 memory.

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Anthony joined the TweakTown team in 2010 and has since reviewed 100s of graphics cards. Anthony is a long time PC enthusiast with a passion of hate for games built around consoles. FPS gaming since the pre-Quake days, where you were insulted if you used a mouse to aim, he has been addicted to gaming and hardware ever since. Working in IT retail for 10 years gave him great experience with custom-built PCs. His addiction to GPU tech is unwavering and has recently taken a keen interest in artificial intelligence (AI) hardware.

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