Recently, some of us may have been surprised about the price in chip-based storage devices like SSDs and RAM that rose sharply. The price increase more than 80% higher than usual. Spiking worries for consumers whose planning to purchase memory (RAM) and chip-based storage devices like SSDs.

Chip?

Yes, a chip is an electronic component used as storage media. Generally, there are two types of storage: temporary storage and permanent storage. An example of temporary storage is the chip in RAM. RAM typically ranges in size from 1GB to 128GB. This RAM found in PCs, laptops, cell phones, smart TVs, and more. RAM is place where an apps and operating system working, like a working table for apps and operating system. The larger the RAM capacity, the more efficient a device's performance. An example of permanent storage is an SSD. It used to store apps itself, operating system, and user data (like document, image, audio, video, etc. These days, capacities range from 128GB, 2TB, to several TB.

Why did this happen?

It all started with the artificial intelligence (AI) industry requires massive amounts of GPUs, DRAM, and storage. Driven by the growing global demand for AI. Meanwhile, chip manufacturers' production capacity has not yet been increased.

Because these AI companies have guaranteed orders for the required number of chips, it's make sense that chip manufacturers will prioritize "certain customers" over relying on sales to the general public. As a result, chip shortage in the market. And according to the laws of economics, the scarcer a product becomes, the higher its price will be.

Which devices affected?

All equipment that uses chips will be affected, from smartphones, smart TVs, PCs and laptops. Prices to get one will increase due to the rise in global chip prices.

How long will this situation last?

This situation will persist from 2026 to 2027. Indeed, it's not a short time to wait before chip prices drop to economical levels.

Are there any steps taken by chip vendors for this issue?

• SK Hynix & Micron: Both are increasing facility investments and accelerating capacity expansion, especially as their entire AI memory chip production capacity is reportedly fully booked for 2026. Micron even plans to move 40% of their DRAM production capacity to new regions.
• TSMC (Taiwan Semiconductor Manufacturing Company): As a major contract manufacturer, TSMC plans to significantly increase capital expenditure (capex), with an estimated expenditure of $52 billion to $56 billion in 2026, a 32% increase from previously.
• EU & Global: There is a coordinated effort (Chips Act) to increase domestic production capacity and strengthen chip manufacturing, with Europe targeting increasing its global market share to 20% by 2030.

So what can we do as end consumers?

If you don't feel an urgent for upgrading, it's best to be patient and postpone the purchase until prices drop to a reasonable value. You can also replace only the most crucial components, such as RAM or storage, or even pay in installments. We can also consider buying used components with a warranty from the store. Many online stores now offer quality used SSDs.

_{Thanos from Avenger movie, "Perfectly balanced, as all things should be"}

Conclusion

This sharp increase in chip prices is not due to any fraudulent activity in the market, but rather of increased market demand from the AI ​​industry. As end consumers, we should be wise in purchasing chip-based components and prioritize for what urgent only.

This is not the first time chip price rose up, back then we are already facing rising prices on vga cards due to crypto needs. This sharp price increase will not last forever. This problem stems from an imbalance between product availability and demand, which will eventually reach equilibrium.  Someone said, "Perfectly balanced, as all things should be". (WR)