As devices from toys to cars at the Consumer Electronics Show become smarter, gadget makers are struggling with the memory and storage needed for them to work.
The dwindling supply and rising cost of dynamic random access memory (DRAM), which provides the space for computers, smartphones and game consoles to run applications or multitask, was a hot topic behind the scenes at the annual gadget event in Las Vegas.
Once cheap and abundant, DRAM, along with memory chips to store data, are in short supply as demand for AI increases in everything from data centers to wearable devices.
“Everyone is screaming for more supply…they can’t get enough supply,” Sangyeon Cho, who is responsible for Samsung Electronics’ semiconductor business in the US, told AFP. “And the demand for AI is still growing.”
DRAM and memory chip manufacturers have shifted manufacturing capacity to meet AI data centers.
Meanwhile, AI features being added to all types of products have increased the need for DRAM and memory in devices from laptops to smart rings.
The global semiconductor ecosystem is facing an unprecedented memory chip shortage that could last into next year, according to market tracker IDC.
“What started as an AI infrastructure boom has now moved outward with memory supply tightening, price hikes, and reshaping of product and pricing strategies across both consumer and enterprise devices,” IDC analysts said in a blog post.
“For consumers and enterprises, this signals the end of the era of affordable, abundant memory and storage.”
According to Larry O’Connor, founder and head of Other World Computing, prices for computers, drives and memory cards have already increased for consumers.
According to Michael Cywinski of Arteris, which specializes in providing connectivity inside chips, gadget makers are making up for the shortfall by either paying a premium for DRAM and memory, redesigning their products or omitting some features.
“Maybe the[robotic]dog you get will sniff and roll over, but he’s not going to bark at the serenade because he doesn’t have enough memory,” Cywinski said.
According to O’Connor, the shortage is already impacting efficiencies, as engineers are writing tighter code to deliver performance using less memory.
O’Connor said, “These are not bad things; they should have happened earlier.”
“The entire industry is built around cheap software that has become very bloated over the last 20 years.”
However, gadget makers should avoid causing their products to perform poorly by compromising memory or raising prices too high by paying dearly for components, warned TechExponential analyst Avi Greengart.
“Here at CES we’re still seeing the usual claims that our thing is the best and the price of RAM is the lowest,” Greengart said on the show floor.
“However, if you spend time talking to (device makers), retailers and component manufacturers in the suites you get a very different story.”
According to Greengart, the story is that revisions will be made to keep prices in line with consumer expectations.
The shortage of memory chips is being watched carefully by other sectors, particularly companies that rely on the semiconductors needed to power AI.
Jochen Hanebach, chief executive of Infineon Technologies, told AFP that these powerful semiconductors and analog parts have “nothing to do” with DRAM, but the companies are alert to any spillover effects.
German semiconductor titan Infineon specializes in powering AI, a market where the amount of computing being done is expected to continue to accelerate.
“Customers are asking about capabilities, and I think they’ve seen the lessons learned on DRAM, and that’s why they’re being very careful,” Hanebach said.
“There’s a good chance of shortages; managing that supply chain is a real challenge.”
published – January 09, 2026 11:27 am IST