DRAM prices have jumped sixfold in four months, pushing budget gaming PCs from 1 million to 1.7 million Korean won. Samsung's DDR5 16GB RAM modules that cost 70,000 won in September now sell for 410,000-440,000 won.
Custom PC stores in Seoul report de facto closures as sales plummet. "We barely sold a few PCs even during the year-end and New Year holidays," said one store owner. Similar price surges hit Berlin and Paris, where average PC costs rose 20-30% since late 2025.
The crisis extends beyond consumer markets. AI datacenters will consume 70% of all high-end DRAM production in 2026, according to Wall Street Journal analysis. For every additional bit of high-bandwidth memory produced for AI systems, conventional DRAM production decreases by three bits.
Micron warned of this scenario in 2024. At Computex that year, vice president Dinesh Bahal told journalists AI would permanently alter memory supply-demand balance. "Memory's become sexy again," Bahal said, noting the industry shift from memory as peripheral to central component.
Market research firms confirm the severity. Market research firms TrendForce and DrameXchange forecast 55-60% quarter-on-quarter PC DRAM price increases in Q1 2026. Memory prices already rose 50% in Q4 2025, with another 70% increase expected this year.
The supply-demand imbalance stems from AI's insatiable appetite. Major memory manufacturers - Samsung, Micron, and SK Hynix - produce 90% of global DRAM but cannot keep pace with demand. Micron killed its consumer Crucial brand in late 2025 to focus entirely on AI customers.
Geopolitical factors complicate expansion. U.S. Commerce Secretary Howard Lutnick threatened 100% tariffs on memory not produced domestically. However, building U.S. facilities presents challenges: operational costs exceed South Korea's by more than double, and skilled labor shortages persist.
Consumer impact extends beyond PCs. DRAM accounts for 10-15% of smartphone component costs, potentially rising to over 20%. Counterpoint Research warns memory cost ratios could double, affecting both new models and existing base devices.
Industry analysts see no near-term relief. The Wall Street Journal quotes Avril Wu, senior research VP at TrendForce, as suggesting new production won't meaningfully impact global supply until 2028. Major DRAM producers already sell capacity for 2027 and 2028.
The PC market faces contraction. IDC predicts an "extremely volatile" year with potential 9% shrinkage. While larger brands like Lenovo, HP, Dell, and ASUS navigate shortages better, smaller manufacturers struggle. Graphics card manufacturers also face supply constraints due to the memory shortage.
Global ripple effects continue. French IT media Les Numeriques reports significant decreases in low-cost desktop and educational PC sales due to manufacturer supply shortages. Japanese retailers now sell PCs downgraded to older DDR4 DRAM alongside reduced CPU and graphics specifications.
Investment banks monitor broader economic implications. Some prepare reports suggesting continued DRAM price surges could affect overall inflation. Cloud providers like Amazon and Microsoft face infrastructure cost increases that may ripple across digitized sectors.
Memory's transformation from commodity to strategic resource reflects AI's fundamental requirements. As Bahal noted in 2024, "without memory, it ain't gonna happen." The warning went unheeded, but the consequences now reshape global electronics markets.
