The semiconductor industry is experiencing a significant DRAM shortage, with prices expected to continue rising due to increased demand from big tech companies. This demand is driven by the need for server DRAM to support the growing AI infrastructure, as high-bandwidth memory (HBM) is costly and limited in capacity. As a result, major suppliers like Samsung Electronics and SK Hynix are negotiating for a 50-60% increase in DRAM prices from the previous quarter. The fierce competition among tech companies to secure DRAM supplies has led to a surge in prices, with the average contract price of DRAM soaring from $1.40 to $9.30 per 8GB DDR4 over the past year. This matters because the ongoing DRAM shortage and price increases could significantly impact the cost structure and profitability of tech companies relying on these components.
