The memory shortage is causing a repricing of consumer electronics (davidoks.blog)

Article summary

The memory shortage is affecting the consumer electronics market, with increased demand for high-bandwidth memory (HBM) used in GPU racks leading to reduced availability of wafers for DDR and LPDDR memory used in laptops and phones. This shortage is causing a repricing of consumer electronics. The memory market is known for its boom-and-bust cycles, and manufacturers have learned to leave some demand unmet to avoid oversupply and price crashes. The current shortage is also influenced by factors such as trade sanctions and the rise of Chinese memory makers.

Main themes

• Memory shortage
• Consumer electronics market
• Boom-and-bust cycles
• Trade sanctions
• Chinese memory makers
• Memory market dynamics

What commenters say

• The memory shortage is caused by increased demand for HBM and reduced availability of wafers for DDR and LPDDR memory.
• Manufacturers intentionally leave some demand unmet to avoid oversupply and price crashes, which is a common strategy in the memory market.
• The rise of Chinese memory makers is challenging the traditional memory market dynamics, but they are hindered by trade sanctions and limited access to cutting-edge technology.
• The memory shortage is not just a matter of supply and demand, but also influenced by factors such as the maturity of smartphone technology and the lack of significant improvements in new devices.
• Some commenters argue that the memory shortage is a result of sabotage by the US government through trade sanctions, while others see it as a natural result of market dynamics.
• The memory market is characterized by boom-and-bust cycles, and the current shortage is just another phase in this cycle.
• The use of high-capacity memory would lead to increased memory usage by programs, creating a vicious cycle of demand and supply.
• The lack of significant improvements in new smartphones is a major factor in declining sales, rather than just the memory shortage.