Electronic device markets are showing increasing signs of impact from the artificial intelligence development race, as data centers begin to acquire larger shares of memory chips. This development places manufacturers of phones, computers, and gaming devices before challenges of component
shortages and a significant rise in production costs. Press reports, including one by the "Financial Times," have revealed a noticeable increase in the prices of certain vital memory chips. Dynamic Random Access Memory (DRAM) prices, for instance, have nearly quintupled in
just one year, with expectations of continued supply disruption and escalating prices until 2027. This component shortage does not stem from AI applications directly consuming memory chips found in phones and computers. Instead, the reason lies in a strategic shift by
semiconductor companies. These companies are moving towards producing more advanced and profitable types of chips, which meet the growing needs of AI servers and large data centers. Advanced AI models require massive amounts of data that must be stored and processed
at extremely high speeds. This has led to an unprecedented surge in demand for High Bandwidth Memory (HBM), in addition to advanced types of Dynamic Random Access Memory (DRAM) and NAND storage. These advanced chip types are produced using the same
factories and production lines that also serve the traditional chip market. As a larger portion of production capacity is directed to meet the requirements of AI data centers, the supply available for smartphones, computers, and other consumer electronics has diminished.
In other words, AI does not compete with the end consumer for purchasing devices, but rather imposes fierce competition on device manufacturers to secure essential internal components. Experts at "TechInsights" research firm have described this situation as one of the most
severe memory shortages the sector has witnessed in its history. They explained that the escalating demand linked to AI data centers is accelerating at a pace that exceeds companies' ability to establish and expand new production lines. Ultimately, the consumer bears
the brunt of this crisis. Memory chips are a fundamental component in all modern electronic devices, including smartphones, computers, tablets, and gaming platforms. With their rising prices, manufacturers find themselves facing a dilemma: either increase the final device price or
reduce its specifications to maintain the previous price level. The "Financial Times" reported that this crisis has prompted some electronics companies to raise their product prices by up to 20 percent in certain cases, while prices for some gaming devices have
seen an increase of around $150. Manufacturers of low-cost devices face greater pressure due to their limited profit margins, which do not allow for absorbing significant increases in component costs. Larger companies, however, may lean towards focusing on producing higher-priced and
more profitable devices, at the expense of economical models targeting lower-income segments. Thus, consumers may feel the repercussions of this crisis in several ways, including higher prices for new devices, the introduction of new models with less memory than expected, or
the continued sale of older devices for longer periods than usual in an attempt to avoid new costs. This crisis cannot be resolved quickly by operating additional production lines within months. Establishing and equipping semiconductor factories and achieving full production efficiency
requires many years, in addition to massive investments estimated in billions of dollars. Although memory manufacturing companies are working to increase their production capacity, a significant portion of these new investments remains directed towards advanced chips specifically for AI, due
to the higher profit returns they yield compared to traditional memory. Estimates from the specialized institution "IDC" indicate that the supply growth of DRAM and NAND chips through 2026 will remain below historical levels, with the repercussions of the shortage likely
to persist until 2027. However, this does not mean that the prices of all phones and computers will rise by the same proportion. The actual impact depends on multiple factors, including the amount of memory used in each device, the nature
of contracts between companies and suppliers, and manufacturers' ability to absorb part of the cost increase. Nevertheless, the general trend is clear: the technological boom that has given artificial intelligence immense capabilities and increasing power may make the electronic devices consumers
use daily significantly more expensive.
