Well, here's an interesting take on the memory shortages, as Etron's Chairman, Lu Chao-Chun, calls DRAM suppliers like Samsung and SK hynix the new 'Santa Claus'.
DRAM Shortages Have Apparently Given Firms Like Samsung & SK hynix a Leverage When it Comes to Customer Allocations
The memory supercycle is a heated topic in today's world, not only because it showcases the rapid advancement of the AI world, but also because it has single-handedly disrupted the PC consumer market, affecting almost every segment. Etron, a famous Taiwanese IC company specializing in DRAM and SoC design, had its chairman comment on the memory shortages (via Ctee), to which he says that memory customers are now being 'grateful' for getting supply allocated, which is one of the reasons why he calls Samsung, Micron, and others the "Santa Claus".
Etron's Chairman claims that one of the reasons the DRAM supply chain has seen massive disruptions is that a few years ago, manufacturers weren't focusing on increasing production capacity, as demand for memory products was at an all-time low due to the COVID-19 pandemic. When things eventually smoothed out, the primary aim for DRAM suppliers was to recoup lost profits, which is why expansion was never a priority. However, now that AI has generated unprecedented demand, increasing production capacity is a process that could take years, if not longer.
One of the culprits behind the rapid rise in DRAM capacity is the demand for HBM in modern-day AI chips, as companies like NVIDIA, AMD, and ASIC manufacturers scramble to acquire HBM. And, compared to general-purpose DRAM products, HBM requires relatively more modules onboard, which is why most of the DRAM demand is driven by the AI sector. Unfortuntately, it's the average consumer who is greatly influenced by the supply chain constraint, since PC products like laptops, GPUs, and many others would be affected tremendously.
We hope that the situation resolves quickly. However, based on estimates, it is claimed that DRAM will remain constrained until 2027, which means we are in for a tough year ahead.
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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