DRAM SHORTAGE TO PERSIST UNTIL 2027, MEMORY COSTS SURGE

The memory chip shortage shows no signs of rapid resolution. According to reporting from Nikkei Asia, the supply-demand imbalance will persist for years, creating sustained pressure on chipmakers and device manufacturers. Memory costs are rising sharply. By mid-2026, DRAM will account for approximately 40% of low-end smartphone manufacturing costs, up from 20% currently. This doubling reflects both constrained supply and rising prices in a critical component category. The shortage extends across the industry. With supply covering only 60% of demand through 2027, manufacturers face difficult choices: absorb costs, pass expenses to consumers, or reduce production. Low-end smartphone makers face the steepest impact, as memory represents an increasing share of their bill of materials. The prolonged shortage underscores structural challenges in semiconductor manufacturing capacity. Recovery timelines remain uncertain, with 2027 marking the earliest realistic relief.