Global Memory Supply Shortages Predicted to Persist Until 2030
Jakarta (ANTARA) - The ongoing global memory supply shortages continue to shake the technology market, causing prices of devices such as smartphones, laptops, gaming consoles, and other electronic products to rise.
Citing Gadgets 360 on Monday, the latest report indicates that the situation could persist until 2030 before supply balances with demand.
SK Hynix Group Chairman Chey Tae-won stated that the memory crisis is unlikely to end until the end of this decade.
SK Hynix is one of the world’s largest DRAM suppliers with a market share of around 32 per cent, second to Samsung. The company also leads the high-bandwidth memory (HBM) market with a share of about 57 per cent.
Chey said the company needs four to five years to meet current HBM demand, particularly to ensure the availability of raw materials and silicon wafers.
However, the production capacity increase is expected to be more focused on the AI market rather than consumer electronics devices.
Meanwhile, a Nikkei Asia report suggests the situation could improve sooner, around 2027, with production expansions from the three major players in the global memory industry: Samsung, SK Hynix, and Micron.
Samsung is reportedly adding a fourth factory at its Pyeongtaek complex in South Korea, expected to be fully operational by the end of 2027.
On the other hand, SK Hynix and Micron are also expanding HBM production, but these steps are not expected to be significant enough to address the DRAM shortage.
Research firm Counterpoint states that ending the DRAM crisis requires a production increase of around 12 per cent per year. However, the current industry expansion plans are only at about 7.5 per cent per year. This supply crisis is beginning to directly impact consumer device prices.
In recent weeks, Sony has raised prices for the PlayStation 5 and PlayStation 5 Pro in several regions, while the ROG Xbox Ally X device has also seen a price increase in Japan.
Several reports also indicate that Apple must pay more for memory components, which could affect the prices of new products this year.
Other manufacturers like Vivo and iQOO in China are also considering price adjustments due to component cost pressures.