The market is tackling the memory chip supply crunch in two ways: diversifying supply chains or raising product prices. In the same muddy waters are HP and Dell.
The market leaders in memory chipmakers, from Micron to Samsung, are busy catering to the AI giants. And Google, Amazon, and NVIDIA are their priority at the moment. The goal, of course, is profit- or the promise of one.
But what’s concerning is how it has been affecting the rest of the market.
Amid the surge in demand for memory chips, a significant portion is going to AI companies. It has created a sinkhole- a global supply crunch. The supply-demand chain of memory chips is currently unstable. What is the price of these limited quantities of memory chips? Hiked by 60%, which is triggering price surges in PCs and smartphones.
Ultimately, it’s the shipping that will decline. Because customers will move on from some leading manufacturers to local market alternatives that are cheaper. Especially if they fail to secure the required ingredients.
The rest of the market is also grappling with the loss, or at least trying to.
The leading PC makers, Dell, ASUS, and HP, are already in the process of qualifying alternatives. And at the top of their choice is a Chinese memory chipmaker- ChangXin Memory Technologies (CXMT). It’s merely a shortlist for now, especially for the non-US markets.
These organizations will wait on their hands until mid-2026s to observe whether the constraints on DRAM will slacken. But after that? CXMT seems like the last resort.
But there are speculations: if HP is already qualifying CXMT’s chips, then it has made up its mind.
As memory chip leaders prioritize AI frontrunners and hyperscalers, the consumer electronics industry will keep on suffering. Limited supply and high costs? Mid and low-level manufacturers might have to compromise on the design and structure of their products.
