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AI Chips Snuff Out DRAM for PCs, Phones
29 Jan
Summary
- AI demand diverts chip production, impacting conventional DRAM supplies.
- Consumer electronics makers face margin pressure and potential disruptions.
- Smartphone and PC markets are now predicted to shrink in 2026.
Global chipmakers Samsung Electronics and SK Hynix are warning that the increasing demand for AI infrastructure is creating a severe shortage of DRAM chips essential for computers and smartphones. These companies, which dominate the DRAM market, are prioritizing production of high-bandwidth memory (HBM) chips crucial for AI servers, thereby reducing the availability of conventional DRAM.
This reallocation of manufacturing capacity is directly impacting consumer electronics makers. PC and mobile customers are experiencing difficulties in obtaining necessary memory components, leading to price surges and adjustments in purchasing volumes. Some manufacturers are considering altering product specifications to cope with these market conditions.
As a result of this ongoing shortage and rising costs, research firms now anticipate a contraction in the global smartphone market by at least 2% in 2026, reversing earlier growth forecasts. The PC market is also expected to shrink significantly. Major tech companies, including Samsung's mobile division, are bracing for a challenging year ahead, with adjusted shipment plans and potential negative impacts on profitability.
