- Data centers are expected to eat up 70% of memory chips produced this year.
- The shortage will last for years, leading to higher component prices and reduced availability.
- The manufacturing capacity for next year is already being sold out.
There’s been nothing but bad news for the PC and overall gaming industry since DRAM and NAND memory prices shot through the roof in mid-2025. Unfortunately, this year is looking to be even worse, and the next few also won’t be any better.
A new report reveals that hyperscaler data centers will consume a staggering 70% of memory chips produced globally in 2026. This leaves little room for the rest of the industries, including the automotive sector, TVs, and electronics, let alone the gaming scene.
Why it matters: Insane price hikes are threatening nearly every industry that consumes memory. Manufacturers won’t soon be able to absorb costs and will be forced to pass them on to customers.
The Wall Street Journal report quotes the respected Counterpoint Research’s MS Hwang, who says the only way to stand a chance at survival is to grab a plane ticket and get that memory allocation from manufacturers as soon as possible.
The US tech giants are doing exactly this—being labeled ‘DRAM Beggars’ by the analysts in the process. Many teams are competing to get as many memory contracts as possible, regardless of pricing, from South Korea’s Samsung, SK Hynix, and Micron.
The memory manufacturers are also scaling up production, but it is not enough to meet the industry’s demand.
The analyst further says that manufacturing capacity for 2027 is already being booked after slots filled up for this year. Thus, the value of memory has shot up to the point that Huang argues RAM will account for 10% of the cost of most electronics.
Server DRAM prices have already grown by 50%. For smartphones specifically, RAM may reach 30% of the bill of materials. IDC also predicts a 5% dip in smartphone sales and a 9% decline in PC sales this year—other analysts have also forecasted similar outcomes.
Do you think the situation will continue devolving for gamers for the foreseeable future? Is there no solution to this apocalypse? Let us know your thoughts in the comments below, or join the discussion on the Tech4Gamers forum.
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Shameer Sarfaraz has previously worked for eXputer as a Senior News Writer for several years. Now with Tech4Gamers, he loves to devoutly keep up with the latest gaming and entertainment industries. He has a Bachelor’s Degree in Computer Science and years of experience reporting on games. Besides his passion for breaking news stories, Shahmeer loves spending his leisure time farming away in Stardew Valley. VGC, IGN, GameSpot, Game Rant, TheGamer, GamingBolt, The Verge, NME, Metro, Dot Esports, GameByte, Kotaku Australia, PC Gamer, and more have cited his articles.
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