DRAM shortage forces Nvidia to weigh scaling back next-gen chip specs

Samsung Electronics, the world's largest memory chip manufacturer responsible for roughly a third of global supply, warned last week that the ongoing DRAM shortage will intensify in 2027 and remain tight through at least 2028, even as the crisis continues to drive up prices on consumer electronics worldwide.

AI Demand Fuels the Crunch

In its Q2 earnings call on July 30, Samsung said frontier AI labs have been "sharing their medium- to long-term demand forecasts" directly with the company in a bid to secure future chip supply, according to TechCrunch. The disclosure suggests AI companies see no near-term ceiling on their memory needs, crowding out consumer-grade production.techcrunch+1

Reuters reported that Samsung's chip division profit rose more than 250-fold year-over-year as the company prioritized high-margin customers willing to sign long-term contracts. The Wall Street Journal separately confirmed Samsung expects the shortage to persist through 2028.wsj+1

The crisis, dubbed "RAMaggedon," stems from chipmakers pivoting production capacity toward high-bandwidth memory used in AI data centers, leaving far less available for PCs, phones, and gaming consoles. Analyst Ellie Wang at TrendForce told AFP that memory prices for PCs and smartphones have risen five to six times compared to a year ago.qatar-tribune

Consumers and Chipmakers Feel the Squeeze

In Hong Kong's Wan Chai Computer Centre, retailer Ken Tam told AFP his business has halved since price rises began, noting that 16 gigabytes of RAM that once cost HK$300–400 now runs HK$1,500. Game consoles, laptops, and smartphones have all seen price increases passed along to buyers.qatar-tribune

The supply constraints are also forcing design compromises at the high end. TrendForce reported that Nvidia ↘ 2.86% has begun evaluating lower-specification memory configurations for its next-generation Rubin Ultra AI chip, moving beyond the original 12-Hi HBM4e design to consider alternatives that require less scarce DRAM capacity.communicationstoday

Skepticism and Legal Scrutiny

Not everyone takes Samsung's forecast at face value. As Eurogamer noted, Samsung directly benefits from prolonged shortages, and earnings calls are designed to project profitability to investors. Samsung, along with SK Hynix ↘ 1.90% and Micron ↘ 1.89%, faces a lawsuit in California alleging cartel-like behavior and price fixing to maintain "supracompetitive prices". China's ChangXin Memory Technologies made its Shanghai market debut on Monday, becoming mainland China's most valuable company — a sign of how lucrative the memory sector has become.eurogamer+1