The RAM crisis shows no signs of abating. DDR5 module prices reached a new all-time high in July, with a year-on-year increase of 448% in the German market, according to data compiled by the 3D Center portal. This surge is not an isolated event: it affects virtually all available kits, from 8GB to 48GB, and the most popular configurations, such as the 2x16GB DDR5-6000 CL28, have seen increases of up to 17% in just one month . The situation is unsustainable for consumers looking to upgrade their PCs, and manufacturers are not immune either.
Valve, the company behind the Steam Machine, was one of the first to speak out. In an interview with Bloomberg, engineer Yazan Aldehayyat stated that the memory shortage is "getting worse" and that retail prices are three to six months behind what manufacturers are paying . This means that the current price of the Steam Machine, which already starts at $1.049, could rise even further in the coming months. Valve is producing as much as it can, but the memory supply remains the main bottleneck.
The culprit: artificial intelligence eats the chips
Behind this price surge is artificial intelligence. Big tech companies are snapping up semiconductor production to power their data centers, leaving less capacity for the consumer market. Memory manufacturers, such as Samsung, SK Hynix, and Micron, are prioritizing multi-million dollar orders from AI companies, which pay prices far exceeding those in the traditional market . As a result, the supply of RAM for computers and mobile devices is shrinking, and prices are skyrocketing. The president of SK Group, owner of SK Hynix, has acknowledged that prices are "abnormally high" and that the industry must increase supply to avoid geopolitical tensions.
This trend isn't limited to desktop PCs. Smartphones are also feeling the impact. Mid-range phones have increased in price while their base performance has decreased, and experts warn that this situation could continue for years . Such a widespread price increase across all technology sectors hasn't been seen in the last 20 years, and generative AI shows no signs of slowing its demand for chips.
Samsung's plan: long-term contracts to stabilize the market
Amid this landscape, Samsung has made its move. The South Korean company, one of the world's largest memory manufacturers, has announced its intention to change the game. Instead of the quarterly agreements that dominate the sector, Samsung proposes signing multi-year contracts with its key clients . The goal is to minimize volatility and ensure consistent business growth, the company stated after unveiling its new HBM4E chip for AI. With this move, Samsung aims to enable device manufacturers to plan for the long term, set more competitive prices, and avoid the recessionary downturns that often follow boom periods.
However, the plan has its limitations. Multi-year contracts won't begin to be signed until the end of 2026, so their impact on the final price for consumers will take time to materialize . Furthermore, artificial intelligence would also benefit from this stability, which could prolong demand and keep prices high. Meanwhile, some manufacturers like Corsair and Lenovo are already turning to Chinese producers like CXMT for chip supplies, and even Apple has requested permission from the US government to purchase memory from these companies.
Market alternatives and responses
Faced with the high cost of RAM, some companies are seeking creative solutions. Palit has launched a new RTX 3060 with 12GB of GDDR6 VRAM, a model that revives a previous-generation GPU to offer a more affordable option. By using GDDR6 memory instead of the more expensive GDDR7, this card avoids some of the price increases, although its performance is lower than that of the RTX 5000 series . The price has not yet been announced, but if it is low enough, it could be an alternative for gamers who don't want to pay the current premium.
Valve, for its part, is forging ahead with its Steam Machine despite the difficulties. The company considers the device a success if it manages to solve the problem of bringing PC gaming into the living room, and doesn't rule out the possibility that the component shortage will continue well into 2027. Valve engineers insist that the current situation is not a passing peak, but a new normal that will force the entire industry to adapt.
The RAM crisis has no short-term solution. Demand for artificial intelligence continues to monopolize production, DDR5 prices are hitting record highs, and manufacturers like Samsung are trying to stabilize the market with long-term contracts that will take time to bear fruit. Meanwhile, consumers face more expensive mobile phones, PCs that are difficult to upgrade, and an uncertainty that experts say could last for several more years. The only certainty is that the memory market has changed forever, and adapting to this new reality will be the biggest challenge for the tech industry.