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Micron CEO: AI Devours DRAM, Consumer RAM Crisis Looms
21 Mar
Summary
- Micron can only supply 50-66% of key customer demand.
- DRAM and NAND prices may double quarter-over-quarter by early 2026.
- Chinese firms accelerate NAND and DRAM production expansions.
Micron Technology's CEO has indicated that the company is currently meeting only half to two-thirds of its key customers' memory requirements. This significant shortfall is attributed to the overwhelming demand from datacenters for components essential for AI compute.
The CEO anticipates that the tight supply-demand conditions for both DRAM and NAND memory will persist beyond 2026. This situation has led to a 'RAM crisis,' with manufacturers prioritizing more profitable AI-related components, causing memory prices to escalate across the market. Predictions suggest DRAM prices could double quarter-over-quarter by early 2026.
This production shift also impacts NAND memory, as resources are being diverted to DRAM. The scarcity affects new devices like phones and laptops, which are shipping with minimal RAM. Consequently, software developers are adapting, increasing reliance on virtual memory, which can reduce Solid State Drive lifespan.
However, Chinese companies are accelerating their NAND and DRAM production timelines. Yangtze Memory and ChangXin Memory are expanding facilities, with anticipated increases in output by late 2026. This expansion, especially after the US removed these firms from restriction lists, may introduce more affordable memory options to the market.
