The Cost of Memory: When RAM Rivals Real Estate

Prices for DDR5 RAM have escalated to such extreme levels that they are now being compared to real estate costs. The DRAM shortage has led to individual memory modules becoming practically unavailable even for corporate clients, let alone regular users.

According to Chinese publication Jiemian, in China, a 256 GB DDR5 module is currently selling for as much as 49,999 yuan, which is approximately $7800. The article notes that 100 such modules are equivalent in price to an apartment in Shanghai. Price increases are attributed to the daily rising costs of DRAM in the spot market. The primary driver is the AI sector, which is actively purchasing memory for data centers. Considering current trends, this tendency is expected to last for a long time.

The issue concerns not only high-capacity server modules but also more familiar configurations of 16 GB and 32 GB, which have become practically unobtainable at a reasonable price for regular PC gamers. The reason is the limited supply from key manufacturers – Samsung and SK hynix, who have reoriented towards the corporate segment. Previously, analysts predicted DRAM price growth of up to 50% in just one quarter.

The shortage’s impact extends beyond the AI sector to other industries relying on high-performance computing, such as automotive and telecommunications, where growing demand for advanced processing capability further pressures supply chains. Meanwhile, technological innovations in chip manufacturing and alternative memory solutions are being explored to increase supply efficiency and meet this surging demand, but significant advancements may still be some time away. Thus, many businesses are investing heavily in research and development to find both short-term and long-term solutions.