DDR5 prices have reached a point where you could actually afford a house in Shanghai by acquiring a few modules, highlighting the severity of DRAM shortages.
A 256 GB DDR5 Module in China Is Retailing For $5,700, Indicating that RAM Prices Are Beyond Reach Now
DRAM prices are increasing significantly in the spot market with each passing day, driven by the growing demand from the AI sector. The ongoing memory shortages have taken the prices of DDR5 modules to absurd levels, and now, according to a post by the Chinese outlet Jiemian, a 256GB DDR5 module in China costs as high as 49,999 yuan or around $5,700, and according to an estimate, only 100 modules could get you a housing unit in Shanghai. The comparison shows that RAM prices are increasing at a rapid pace, and by the looks of it, the trend will persist for quite some time.
Not only high-storage modules, but even 16 GB and 32 GB configurations have become almost unaffordable for PC gamers, and this is attributed to the limited capacity left by suppliers like Samsung and SK hynix to cater to the consumer market. Based on a previous report, we discussed how DRAM prices are expected to soar by up to 50% this quarter alone. Despite such aggressive increases, it is anticipated that similar price hikes will occur throughout the year, potentially driving memory prices to astonishing levels.
For now, producers like Samsung and SK hynix aren't increasing DRAM capacity at a pace similar to the demand, given that they see a risk of oversupply. At the same time, manufacturers are looking to increase HBM production capacities, since the technology is in dire need of clients like AMD and NVIDIA. Consumers are left with only the option of buying expensive hardware. Given that 256 GB modules in China are priced at a whopping $5,700, it is not unreasonable to expect a similar situation to emerge in other regions soon.
News Source: SCMP
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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