The three companies manufacturing over 95% of global DRAM chips have decisively pivoted toward artificial intelligence infrastructure. Samsung Electronics, SK Hynix, and Micron Technology have reallocated approximately 93% of combined manufacturing capacity to high-bandwidth memory for AI accelerators. This strategic shift has severely constrained supply for consumer-grade DRAM and NAND flash.
High-bandwidth memory generates three to five times more revenue per wafer than traditional chips. Consequently, memory costs for televisions have more than doubled. TrendForce projects a 9.4% year-over-year decline in notebook shipments for 2026, while average smartphone prices are expected to reach record highs of $523.
Industry leaders warn this shortage is structural rather than cyclical. Micron CEO Sanjay Mehrotra predicts supply constraints will persist beyond 2026. SK Group Chairman Chey Tae-won suggests shortages could last until 2030. Despite plans to double wafer production, new capacity will likely prioritize high-margin AI products over consumer relief.
This market concentration grants the trio near-oligopolistic pricing power with demand visibility stretching years into the future. Conversely, consumer electronics manufacturers face deteriorating cost structures. Rising component prices threaten to compress mid-tier market segments globally, suppressing both manufacturing volumes and end-user demand simultaneously.