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AI Inference Drives Memory Chip Demand, Shortage Expected to Continue Past 2030
🇰🇷 South Korea /Technology

AI Inference Drives Memory Chip Demand, Shortage Expected to Continue Past 2030

From Dong-A Ilbo · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

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  • The global demand for memory semiconductors essential for AI inference is expected to continue, leading to a prolonged shortage and price surge.
  • Prices for NAND flash and DRAM have risen significantly, with NAND becoming more expensive than DRAM due to rapidly increasing demand.
  • Market analysts predict the memory shortage could persist beyond 2030, impacting the AI development race.

The race to develop artificial intelligence is shifting from large-scale learning to inference, creating an unprecedented "memory golden age." This transition has triggered a severe shortage of essential memory semiconductors, driving up prices for DRAM and NAND flash.

Recent market data reveals a dramatic price increase, with the average price of general-purpose NAND flash products more than quintupling from $5.70 to $28.80 since the end of last year. Similarly, the average price for general-purpose PC DRAM has more than doubled, reaching $21 from $9.30. This surge, with prices doubling or even quintupling in just six months, highlights the intense demand.

Notably, the demand for NAND flash has grown so rapidly that it has overtaken DRAM in price, a reversal of the usual trend. The market anticipates this memory shortage will continue for a significant period, potentially extending beyond 2030. This sustained scarcity poses a challenge for the ongoing AI development race, as memory chips are critical for AI to perform tasks efficiently.

DistantNews Editorial

Originally published by Dong-A Ilbo in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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