Al gobbling up memory chips essential to gadget makers

Dynamic Random Access Memory or DRAM is a type of semiconductor memory used as the primary memory in computers, smartphones, and servers. It is volatile, meaning it requires constant power to retain stored data; if power is cut, all information is lost. As of January 2026, the global DRAM market is experiencing a severe shortage and record price increases - rising faster than the price of gold in some regions - driven by massive demand from Al infrastructure. Major manufacturers like Samsung, SK Hynix, and Micron have shifted production to high-end memory for data centers, leading to supply constraints for consumer electronics.

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As devices from toys to cars get smarter, gadget makers are grappling with a shortage of memory needed for them to work. Dwindling supplies and soaring costs of Dynamic Random Access Memory (DRAM) that provides space for computers, smartphones, and game consoles to run applications or multitask was a hot topic behind the scenes at CES, the annual gadget extravaganza in Las Vegas.

Once cheap and plentiful, DRAM — along with memory chips to simply store data — are in short supply because of the demand spikes from AI in everything from data centers to wearable devices.