LONDON (IT BOLTWISE) – Memory prices are rising rapidly, creating challenges for both PC users and smartphone manufacturers. Experts see the reason as shifting production to high bandwidth memory for data centers, which is making DDR5 memory scarce. The effects are already being felt and there is no easing of the situation in sight.
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The prices of RAM, especially DDR5 modules, have seen a significant increase in recent months. This development poses challenges for both end users and manufacturers. A 64 gigabyte RAM kit can now cost more than a current game console, which surprises and annoys many users. But what is behind this price increase?
A key factor is the relocation of production capacities by large memory manufacturers. These are increasingly focusing on the production of High Bandwidth Memory (HBM) for data centers that are optimized for AI applications. These chips are essential for the demanding demands of AI-powered data centers, while DDR5 memory used in traditional desktop computers is being pushed back in production.
In addition to the production focus on HBM chips, the gradual end of DDR4 memory is contributing to the shortage. Manufacturers are reducing production of DDR4 in favor of the newer DDR5 technology, further driving up prices. The switch to Windows 11, which prefers DDR5 memory, is also increasing demand for these modules.
The implications of these developments are far-reaching. Consumers face higher costs for PCs and smartphones as manufacturers are forced to pass on increased memory prices to customers. Analysts predict that simple office computers could become significantly more expensive in the near future. Cloud providers could also adjust their prices as the costs of important components in data centers rise.
There is no sign of the situation easing any time soon. Experts assume that memory prices will continue to rise until 2026. This situation is reminiscent of the price development of graphics cards, which have also risen sharply due to the AI boom, crypto hype and supply chain problems. Consumers should prepare for memory prices to remain high for the foreseeable future.
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