Global Memory Shortage Drives Up Tech Manufacturing Costs
Seoul, Thursday, 17 September 2026.
Surging artificial intelligence demand has caused severe global memory chip shortages, forcing RAM costs to represent up to 80 percent of manufacturing expenses for budget tech devices.
AI Demand Strains Global Memory Supply
Surging artificial intelligence demand has caused severe global memory chip shortages, forcing RAM costs to represent up to 80 percent of manufacturing expenses for budget tech devices [3]. As of September 2026, rising demand driven by the ongoing artificial intelligence boom has pushed memory chip inventories at key manufacturers Samsung Electronics and SK Hynix to critically low levels [1]. According to industry executives, the tightening supply of dynamic random-access memory (DRAM) is spilling over into broader technology markets, threatening hardware production timelines and cost structures across enterprise IT, consumer electronics, and data center operations worldwide [1].
Manufacturing and Supply Chain Disruptions
The current RAM memory shortage, driven by the AI boom and depleted inventories at Samsung and SK Hynix, began impacting manufacturers like Exceleram in Q4 2025, marked by sharp DRAM price increases in October 2025 [1]. During Q2 and Q3 2026, demand for RAM showed a recovery, with companies and consumers purchasing more cautiously but consistently [1]. However, Exceleram asserts that the RAM crisis is not normalizing but rather escalating, characterizing the current market as brutal with unreliable supply options [1]. The DRAM market is currently facing severe supply chain issues, with manufacturers reporting weeks without receiving offers for necessary chips, leading to slowed development of new consumer hardware [1].
Shifting Cost Structures
Memory shortage continues to hit smaller brands, with device makers like Fairphone saying that memory now makes up nearly 60% of a device’s bill of materials [2]. At the AI Infrastructure Summit 2026 in Santa Clara on September 15, 2026, Intel CEO Lip-Bu Tan reported that memory chips now account for 70-80% of the bill of materials for budget smartphones and laptops [3]. This represents a significant variance in cost estimation across the industry, with a range width of 10 percentage points noted in recent executive statements [3]. Intel leadership indicated that memory can now account for 70 to 80 percent of a device’s total cost, a significant increase from prior years [3].
Future Economic Outlook
Intel CEO Lip-Bu Tan stated that the current memory bottleneck is expected to intensify throughout 2027 [3]. Industry forecasts suggest no meaningful relief for the memory supply shortage until 2028, with budget-tier hardware prices expected to continue rising into early 2027 as existing fixed-price contracts expire and are renegotiated [3]. While some social media commentary suggests there is light at the end of the tunnel regarding RAM shortages, official industry timelines point to a prolonged recovery period [6]. Large OEMs are mitigating supply risks by locking in long-term fixed-price contracts, a practice that smaller competitors cannot afford, leading to market share consolidation [3].