The surge in demand for artificial intelligence (AI) servers has caused the price of general-purpose memory to soar by as much as 600% in one year. Price pressure is intensifying, particularly for broadband equipment such as routers and set-top boxes.
Market research firm Counterpoint Research said on the 12th that profitable AI server demand is driving up the prices of DRAM and NAND flash memory, with the consumer electronics sector being directly affected. Counterpoint said, "The surge in demand for AI servers is causing DRAM and NAND prices to skyrocket, and the memory costs for everything from smartphones to routers and set-top boxes have risen by more than 600% over the past year."
The extent of price increases varied by product category. While smartphone memory prices tripled, the prices of consumer-grade memory-based broadband products soared nearly sevenfold over the past nine months. While supply shortages in the PC and low-end smartphone industries have already been reported, recent monthly trends show a greater impact on other consumer product categories such as routers, gateways, and set-top boxes.
The burden felt varies depending on supply chain conditions. Counterpoint Research said, "Router products from original equipment manufacturers (OEMs) with insecure supply chains and weak negotiating power are being hit the hardest."
Source: THE ELEC (https://www.thelec.kr)
▶ Original source: https://www.thelec.kr/news/articleView.html?idxno=52388
