tech
SHI International: Assessing AI's Impact on RAM Prices
Cheryl Slater from SHI International Corp explores how AI demand is driving rising RAM prices causing supply chain delays for global organisations
TL;DR
- AI demand is accelerating, leading manufacturers to shift production from conventional DRAM to HBM for AI accelerators.
- This reallocation of manufacturing resources and wafer capacity has created a scarcity of traditional DRAM, impacting server hardware deployment.
- Major DRAM producers like SK hynix, Micron, and Samsung control the global supply, with SK hynix already securing demand for all its 2026 RAM production.
- Hyperscalers are stockpiling DRAM due to fears of future constrained supply, further intensifying the shortage.
- The shortage is expected to last until at least early 2027, dependent on factors like fab rebalancing and potential new production facilities.
- Businesses are reacting by either making upfront purchases or shutting down workloads to manage capacity.
- IT teams can improve efficiency through better lifecycle management and data center architecture redesigns.
- Channel players can leverage opportunities in IT Asset Management, Software Asset Management, and intelligent refresh programs.
- The supply chain shocks are pushing organizations towards greater resilience and more dynamic procurement strategies.
- SHI International is a global IT solutions provider that helps organizations select, source, and manage IT infrastructure.