DRAM supply may meet only 60 percent of global demand by 2027

Global DRAM supply is expected to fall short of demand by 2027, driven by rising AI workloads. Data centres are securing large memory volumes, leaving less for consumer devices. This could lead to higher prices for smartphones and laptops.

New Delhi: The global memory market is entering a prolonged supply crunch, and it could directly impact prices of smartphones and laptops in the coming years. Industry data shows that demand driven by artificial intelligence workloads is rising faster than manufacturers can expand production.

A report cited by Nikkei Asia highlights that DRAM supply may remain tight through the decade, with no clear signs of stabilisation. The gap between supply and demand is widening as data centres scale up infrastructure to support AI services used across search, chatbots, and enterprise tools.

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DRAM supply gap may stretch till 2027

Estimates suggest that by the end of 2027, global DRAM manufacturers may only be able to meet around 60 per cent of total demand. This shortfall is expected to keep prices elevated across the electronics supply chain.

The imbalance is largely driven by hyperscale data centres, which are securing large volumes of memory in advance. These facilities are prioritising high performance workloads, leaving limited supply for consumer devices such as smartphones and personal computers.

AI workloads shift focus to advanced memory

The rise of AI applications has changed how memory is allocated. Manufacturers are increasingly focusing on high bandwidth memory, which is essential for running large AI models efficiently. At the same time, production of older memory standards such as DDR3, DDR4, and LPDDR4 is being scaled down.

This shift is reducing availability for traditional computing devices. Industry observers note that several companies have already moved away from legacy product lines to focus on more profitable AI driven segments.

Production expansion not keeping pace

Major players including Samsung, SK Hynix, Micron, and Chinese manufacturers are investing in new fabrication facilities. Some of these plants are expected to come online over the next few years, but timelines remain long.

Current projections indicate that annual production needs to grow by around 12 per cent between 2026 and 2027 to meet demand. However, actual growth is closer to 7.5 per cent, creating a sustained supply deficit.

Impact on consumer devices likely

For consumers, the effect is expected to be gradual but noticeable. Rising memory costs typically translate into higher prices for smartphones, laptops, and other electronics. Entry level devices may face tighter configurations, while premium models could see price increases.

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Siddharth Shankar brings over a decade of experience in the realm of journalism, film making, and marketing, currently heading the Technology, Science, Gaming, and Automobile sections. He blends his expertise and passion to bring forth cutting-edge stories that resonate with a dynamic audience. Siddharth co-founded BWAutoworld.com for BW Businessworld and was leading Science and Technology domains for TimesNow Digital. For leads Siddharth can be reached on Twitter - @Siddh4rth

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