AI Demand Squeezes DRAM Supply, Threatening PC and Smartphone Makers

Samsung Electronics and SK Hynix warn that surging demand for AI server chips is diverting DRAM production toward high-bandwidth memory (HBM), tightening supply for traditional DRAM used in PCs and smartphones. The shift risks raising component costs and disrupting shipments for major brands like Apple (AAPL-US). The two firms control roughly two-thirds of global DRAM output. SK Hynix’s marketing head Park Joon Deok stated PC and mobile clients now face “increasing difficulty” securing stable DRAM supply. Memory makers, cautious after 2017’s overcapacity bust, are limiting new capacity through at least 2026–2027. Prices are rising, forcing some brands to downgrade specs or delay orders. IDC and Counterpoint forecast smartphone sales to drop ≥2% in 2026; PC shipments may fall 4.9%. Samsung’s mobile profits fell 10% YoY last quarter. Macquarie data shows SK Hynix leads HBM market with 61% share vs. Samsung’s 19%, intensifying competition as both prioritize AI chip output.