TECH NEWS – Although memory is currently expensive, it’s important to understand why waiting for the storm to pass isn’t a good idea.

While many are aware of the main reasons for the significant increase in consumer RAM prices, gamers remain uncertain about the situation, primarily due to the rising costs of DDR5 and DDR4 memory modules. However, understanding the complexity of the supply chain helps make sense of the current shortage. A Reddit user has called for a RAM boycott, saying it would save everyone money. However, given the current state of the memory industry, a boycott would have little effect. Rather, it would deprive PC gamers of affordable consumer memory.

Many people think that demand from the AI sector alone has led to the rise in memory prices. However, it’s important to provide some context. During the pandemic, the PC supply chain was in a difficult situation when demand for RAM, especially in the consumer sector, began to plummet. Suppliers were ultimately forced to reduce production and redirect resources to other areas. We previously reported on manufacturers, such as Samsung, who experienced a slowdown in DRAM demand a few years ago, which caused significant concern at the time.

Even when DDR5 was released, demand from gamers was lower than expected during a generational change. This was mainly because the long lifespan of platforms, such as AM4, allowed users to remain on their old hardware. DRAM manufacturers eventually began to suffer and had to reduce their production capacity significantly to remain profitable. This exacerbated the ongoing memory shortage; production lines were not prepared for the unprecedented demand awaiting them.

The RAM Shortage is Deliberate. Refusing To Pay These Prices Now Will Save Us All A Fortune
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A significant portion of DRAM demand is generated by the AI supply chain and manufacturers like Nvidia and AMD. While we don’t have an accurate estimate of how DRAM demand is divided between consumers and the AI industry, it’s safe to say that the AI supply chain has consumed most of it. Even if gamers stopped buying PC memory, it would have little impact on manufacturers such as Samsung, SK Hynix, and Micron because most of their sales come from the AI sector. The AI craze has created such high demand for DRAM products (DDR, GDDR, RDIMM, HBM, LPDDR, and many others) that almost all memory variants are facing supply constraints. HBM is an integral part of modern AI chips, so most DRAM capacity is devoted to manufacturing this type of memory. Since manufacturers decide who to sell their DRAM products to, gamers are not given preferential treatment because their profit margins are lower than those of AI giants.

Don’t give in to FOMO when buying RAM, especially if you’re looking to expand your existing capacity. Gamers who currently use 8- or 16-GB memory modules should stick with them for a few months until the shortage passes. Upgrading our RAM now would mean spending too much on an unnecessary expense. Currently, it’s a good idea to take advantage of deals on pre-built machines because although RAM modules are expensive, they are the best short-term solution, especially since prices are expected to remain high for a few more months. Pre-built machines are sold at prices that don’t reflect the memory shortage, so we can purchase memory modules at excellent prices.

Due to the scarcity of memory chips, it is safe to say that consumer devices will likely be more expensive in the future, and this shortage is expected to continue until 2027. Therefore, it is important to be aware of the dynamics of the supply chain in order to make the best decision.

Source: WCCFTech