In the middle of last year, we can see that the data center and AI sectors in particular have started to consume a lot of DRAM memory supply to the point that memory component manufacturers such as Micron have announced that they will close the Crucial consumer memory brand to focus on the production of HBM components for the AI sector.
A new report by the Wall Street Journal has said that 70 percent of memory component production (DRAM, NAND) will be used to build server machines and power artificial intelligence systems that are currently being pursued by many global technology companies.
This issue is seen not only to plague the computing and consumer smart device sectors, but also many other sectors such as automotive, consumer electronics and others. Memory companies' focus on the production of memory components for the data center and AI sectors will cause the supply of components for other consumer industries to be affected as well.
This memory supply issue can be seen through several incidents that occurred before, such as Jensen Huang, CEO of NVIDIA, going out to dinner with the heads of Samsung and SK Hynix, two of the largest memory manufacturers in the world today.
There are even reports that many tech companies have started trying to do the same to secure sufficient memory supplies for themselves, but with the current memory production output, it's hard to please everyone.
ASUS also recently reported that it will no longer manufacture smart devices and will focus on a sector that focuses more on AI technology for the consumer and enterprise sectors.
Micron also recently said that they will begin construction of a $100 billion memory production factory in New York but the factory is not expected to be operational until 2028, so it's not just computer builders, but also consumer electronics brands that will have to wait until additional capacity arrives if the AI sector is still greedy and still wants a lot of memory for the next few years.
