AI’s Hunger for Fast Memory Is Raising the Cost of Phones and PCs

Artificial intelligence is driving a surge in demand for a special kind of fast memory, and that surge is starting to show up in the price tags of the phones, laptops and tablets we buy.

The memory in question is called high‑bandwidth memory, or HBM. In AI data centres, HBM lets the processors handle huge amounts of data very quickly, which speeds up the training of AI models.

Because AI needs so much HBM, chip makers are shifting production away from ordinary DRAM. Alex Jenkins, director of the WA Data Science Innovation Hub, notes that only three companies—Micron, SK Hynix and Samsung—control more than 90 % of the global DRAM market, and they also produce HBM.

The sudden shift has already pushed the price of a 16‑GB DRAM chip from about $4.76 in 2024 to nearly $60 by June 2025, according to data from the WA Data Science Innovation Hub.

Higher memory costs are being passed on to consumers. Samsung has already increased the price of some phones and tablets by up to $115, and other major brands such as Microsoft, Google and Apple have announced similar price hikes.

Experts warn the shortage will not disappear soon. SK Hynix chairman Chey Tae‑won explained that producing the wafers needed for HBM takes four to five years, so the scarcity could last until 2030.

As a result, the devices we rely on every day are likely to stay more expensive, and low‑end models may even disappear from the market.

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