“Artificial intelligence is the science of making machines do things that would require intelligence if done by humans.” - Marvin Minsky, AI pioneer
Memory shift drives market pressure
The transition from DDR4 to DDR5 memory is reshaping hardware markets just as AI data centres consume massive amounts of computing power. With DDR4 modules entering a shortage and DDR5 becoming the new standard, prices for key electronic components are rising across the board.
Industry recalibration slows relief
Manufacturers are struggling to adjust production mixes as demand for DRAM and NAND surges. Several categories of DDR4 and low density NAND have seen a 40 to 100 percent increase. Experts note that while GST rate cuts helped briefly, component level cost spikes have neutralised those benefits.
Consumer electronics feel the squeeze
A wide range of devices such as televisions, laptops, smartphones, routers and even medical equipment now rely heavily on these memory technologies. Companies report that prices for entry to mid tier devices could climb by 10 to 15 percent as component shortages persist.
Chipset bottlenecks deepen the impact
LED television manufacturers expect panels to become up to 7 percent costlier starting December as chipmakers fail to meet demand. Smartphones using advanced AI enabled chipsets appear unaffected for now, but other consumer categories are bracing for staggered procurement and delayed technology upgrades.
Long term outlook remains uncertain
Industry bodies note that DDR4 shortages are likely to continue as production gradually shifts to DDR5. Retailers may need to plan for higher device prices over the next year as supply chains take time to stabilise.
Summary
A global shift from DDR4 to DDR5 memory, combined with surging AI driven compute demand, has created a shortage of key memory components. This shortage is pushing up prices of televisions, laptops, routers and other electronics, with effects expected to last for several months.
Food for thought
If AI continues to accelerate hardware demand, how should countries plan for long term semiconductor resilience?
AI concept to learn: Memory Bandwidth, DDR4 to DDR5
Memory bandwidth refers to the rate at which data can move between memory and a processor and it becomes especially important in AI workloads that require large volumes of rapid data access. Higher bandwidth enables faster model execution and better performance in modern devices. DDR5 offers significantly higher bandwidth, starting around 4800 MT/s
and scaling far beyond, compared to DDR4’s typical 2133–3200 MT/s range.
It improves power efficiency with lower voltage and introduces
on-module power management for better stability. DDR5 also doubles the
burst length and includes dual-channel DIMM architecture, enabling
faster data processing.
[The Billion Hopes Research Team shares the latest AI updates for learning and awareness. Various sources are used. All copyrights acknowledged. This is not a professional, financial, personal or medical advice. Please consult domain experts before making decisions. Feedback welcome!]
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