The demand for chips in AI may result in memory prices remaining excessively high for several years.

      Memory shortages may affect your next phone, laptop, and GPU for years to come

      Recent reports have indicated that memory prices may not decrease until 2027, suggesting that the memory chip shortage is not a temporary issue. This poses a problem for anyone hoping for a reduction in prices for phones, laptops, and GPUs in the near future.

      According to Reuters, SK Group chairman Chey Tae-won stated that the global shortage of chip wafers is expected to persist until 2030, driven by a demand for artificial intelligence that continues to exceed supply. Chey noted that the current shortage could remain above 20%, mainly because AI systems require significant amounts of high-bandwidth memory, which results in a high consumption of wafers.

      Reasons memory prices could remain elevated for several years

      The rise in memory chip prices wasn't caused by a sudden production shortfall or artificial price manipulation. Chey specifically highlighted the extensive demand for high-bandwidth memory (HBM) from AI applications as a major factor in the ongoing shortage. He believes the industry will need at least four to five years to generate sufficient additional wafer capacity, explaining why the shortage may last until the end of this decade.

      Memory is not simply a minor component within the supply chain; it impacts almost every consumer product, ranging from budget smartphones and mid-tier laptops to gaming handhelds, consoles, SSDs, and graphics cards.

      Why this matters for your finances

      Chey anticipates that SK Hynix will present a strategy aimed at stabilizing DRAM prices. Companies typically refrain from discussing price stabilization unless they are concerned about volatility, which generally indicates unpredictability and higher costs for consumers.

      Given that SK Hynix controls 57% of the HBM market and 32% of the global DRAM market, the company's position is significant. As the second-largest DRAM supplier worldwide, these warnings should not be taken lightly.

      Vikhyaat Vivek is a tech journalist and reviewer with seven years of experience in consumer hardware.

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