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Chip Shortage: Memory Crisis to Last Until 2027
16 Sep
Summary
- Independent device makers face a memory shortage expected to last through 2027.
- Companies are redesigning products and testing chips for authenticity.
- Memory costs can account for nearly 60% of bill materials for lower-end devices.
The independent electronics sector is grappling with a significant memory shortage, with projections indicating the crisis will continue through 2027. Manufacturers of phones and laptops are actively redesigning products and implementing stringent testing protocols to identify and reject counterfeit chips.
The scarcity of available memory is now the primary constraint, overshadowing price concerns for many businesses. Executives anticipate that the demand for memory will continue to outstrip production capacity well beyond 2030, with some forecasting 2027 to be a particularly challenging year from a supply perspective.
To navigate these challenges, companies are innovating. Some are developing multiple motherboard designs to accommodate different component configurations, while others are making memory modular, allowing customers to integrate salvaged parts. Rigorous batch testing ensures the authenticity of components, as the market has seen a rise in refurbished parts being resold. These measures are critical as memory can represent a substantial portion of a device's total cost.
Companies are passing these increased costs to consumers in various ways, from rapid price adjustments to offering paid memory upgrades. However, some are absorbing the costs to maintain their market position. The overall impact is a squeeze on the lower end of the device market, where memory costs can significantly affect affordability.
