- The ADATA chairman believes memory shortages aren’t going anywhere for now.
- He says that AI is not a bubble and that these discussions are 10-20 years too early.
- ADATA expects memory and electricity to become the scarcest resources in the world as this demand continues to surge.
DRAM prices continue to surge as more and more giants show an interest in AI technology and its development. In fact, Micron’s latest contracts suggest things will stay relatively stable for at least five more years.
If this wasn’t bad enough, another giant player in the industry has recently come forward with an interesting piece of information. ADATA now says that DRAM shortages are expected to persist for the next 10 years.
Why it matters: Memory shortages could limit consumer access to high-end technology in everyday products. The scenario may even halt innovation in various industries that rely heavily on DRAM.
TSMC stock prices recently took a hit, and when addressing the situation, ADATA chairman Chen Libal was quick to dismiss optimism regarding the memory shortages.
According to the Commercial Times, the ADATA head believes AI is indeed far from being a bubble. The executive suggests such discussions are being held 10 years too early, or perhaps even 20 years too early.
Chen Libal notes that any hopes of memory prices coming down are typically due to an underestimation of the global demand. He believes that memory and electricity will become the world’s most scarce resources over the next decade.
We can discuss whether the AI bubble will occur in 2040 or 2050 after 2030.
As such, prices for consumer electronics that heavily rely on memory, such as smartphones, gaming consoles, etc., will also continue to rise steadily over the years.
Currently, Samsung, SK Hynix, and Micron are doing their best to keep up with the steadily rising demand. All three have confirmed plans to expand foundries and manufacturing capacities between 2030 and 2035, so it will be interesting to see how the situation evolves.
On the gaming side, consoles like the PS6 and Xbox Project Helix will certainly cost more than traditional Sony and Microsoft hardware owing to the global memory pricing. As evidence, the Steam Machine already costs over $1,000.
Similarly, PC gaming will continue to remain relatively expensive. DRAM shortages may even handicap future graphics cards as giants like Nvidia and AMD struggle to secure memory for future products, especially when it comes to the much sought-after 3GB GDDR7 chips.
Thank you! Please share your positive feedback. 🔋
How could we improve this post? Please Help us. 😔
[Senior News Reporter]
Avinash is currently pursuing a Business degree in Australia. For more than 5 years, he has been working as a gaming journalist, utilizing his writing skills and love for gaming to report on the latest updates in the industry. Avinash loves to play action games like Devil May Cry and has also been mentioned on highly regarded websites, such as IGN, GamesRadar, GameRant, Dualshockers, CBR, and Gamespot.
Join Our Community
