Memory shortage, server prices rise

Due to memory shortages, server and PC prices have surged significantly.

• The focus on artificial intelligence in memory production has limited the supply of memory for consumer-grade hardware.

• The cost of DRAM has risen faster than most manufacturers expected.

• Dell and Lenovo have announced that enterprise server prices will see double-digit increases.

Server and PC manufacturers are facing the issue of sharply rising component costs, primarily due to memory shortages.

Analysts warn that the production of DRAM and HBM is increasingly concentrated on AI servers, leading to reduced availability of standard consumer hardware.

TrendForce estimates that DRAM prices could rise by 8% to 13%, while Counterpoint predicts an even larger increase.

Industry Response and Price Adjustments

This shift in production focus has prompted companies to reconsider their product lines, with some brands halting the production of consumer-oriented memory to meet enterprise demands.

Major OEM manufacturers, including Dell, Lenovo, HP, and HPE, plan to significantly raise server prices, with an expected increase of around 15%, while PC prices are expected to rise by about 5%.

Dell's Chief Operating Officer described this shortage as "unprecedented," noting that supply is struggling to keep up with the growing demand.

Storage components, NAND flash, hard drives, and advanced semiconductor processes are all under immense pressure.

Channel sources indicate that there is currently a widespread extension of delivery times across brands, although Apple Mac computers and Microsoft Surface products seem to be less affected.

Memory manufacturers are increasingly shifting towards AI-centric production, impacting the supply and cost of general hardware components.

Micron Technology recently announced it would stop producing Crucial brand products, aiming to prioritize service for large customers with AI servers.

Reports indicate that as wafer fab capacity shifts towards AI workloads, Samsung has raised memory prices by as much as 60%.

The surge in demand has caused fluctuations across the memory market, forcing manufacturers to scramble to adjust pricing and supply strategies.

Supply chain sources say that nearly all major manufacturers plan to raise server prices by double digits and moderately increase personal computer prices.

Lenovo's Chief Operating Officer warned that the cost pressures on memory and solid-state drives are "greater than ever," making mitigation efforts difficult.

HP described the rise in memory costs as a "temporary headwind," primarily affecting personal computers rather than peripherals.

Despite these adjustments, IDC analysts point out that the current market fluctuations are unusually large compared to past volatility.

This trend reveals the growing impact of artificial intelligence on the hardware market, with demand for servers, CPUs, and GPUs leading to memory shortages.

Although manufacturers are working to address these impacts, the speed of these price changes indicates that budgets for enterprise and consumer hardware will face ongoing pressure Source: Semiconductor Industry Observation

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