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Smaller Phone and Laptop Makers Face Prolonged Memory Shortage

Major suppliers shifting production to high‑bandwidth AI memory are constraining supply of conventional DRAM and NAND.

Overview

  • A handful of producers have redirected wafer capacity toward high‑bandwidth memory (HBM) used in AI data centers, reducing allocation of standard DRAM and NAND for independent device makers.
  • Independent brands report availability, not price, is the main problem because they lack long‑term contracts and cannot secure the allocations that large OEMs obtain.
  • The squeeze makes memory a larger share of costs for budget devices and risks making entry‑level phones and low‑cost laptops uneconomical to build.
  • Smaller companies are adapting by redesigning motherboards, modularizing memory, testing incoming chips for counterfeits, and offering paid upgrades or repricing to manage intermittent supply and higher input costs.
  • Industry forecasts and executives warn tight supply will persist through 2027 with normalization not likely until 2028 or later, which could keep shipment declines and higher consumer prices in place.