Why you should gift the gamer in your life RAM before it’s too late
Gamers are very easy to please. Just take note of whatever system they’re playing on: PC, Xbox, PlayStation, Nintendo Switch, and ask what game or peripheral they’re looking for—from the latest games to controllers, keyboards, or cases. Not to mention, watch out for any ongoing holiday or end-of-the-year sales that can save you hundreds, if not thousands, of pesos for your gift.
But in particular, if the gamer in your life is currently building a PC, or is even thinking about building one, there’s only one gift to get: Random Access Memory (RAM).
Why? Because by next year and for the foreseeable future, prices will continue to rise for this covetable computer part due to shortages, monopolies, and artificial intelligence (AI).
AI strikes again
We are in the midst of an unprecedented memory chip shortage, and it is caused by our favorite technological villain: AI. According to the International Data Corporation (IDC), increased demand for the rapid expansion of AI infrastructure has put a significant strain on the global supply chain. Global AI leaders like Microsoft, Google, Meta, and Amazon are noted to be placing significant pressure on memory manufacturers, forcing them to prioritize orders for AI servers rather than consumer electronics.
To put it plainly: Materials that could be going to smartphones and laptops are instead going to AI—this, in turn, will drive prices for smartphones and laptops because there will be less RAM available in the market.
According to the IDC, memory typically represents around 10 to 20 percent of a phone’s total cost. By next year, as prices continue to go up, smartphone average selling prices will likely see up to an 8 percent increase. For PCs, the IDC notes that Lenovo, Dell, HP, Acer, and ASUS have forecasted 15 to 20 percent price hikes.
Monopoly: Manufacturing edition
We would love for the evil AI to be the sole villain in this tale. But in reality, it’s only a small piece of the puzzle. The true big bad? Good ‘ol monopolies and human greed.
According to Linus Tech Tips, a reputable YouTuber specializing in PC reviews and an industry insider, hardware prices are rising across the board—not only RAM but also other components such as CPUs (Central Processing Units) and GPUs (Graphic Processing Units)—due to the lack of decentralized manufacturing.
NVIDIA, the market leader for GPUs, doesn’t fabricate any of its products in-house and instead outsources them from Taiwan Semiconductor Manufacturing Company (TSMC)—the world’s largest dedicated chip manufacturer with clients such as Apple, Amazon, Google, and Intel. TSMC specializes in EUV lithography, a technology that enables manufacturers to build faster, more powerful processors in smaller form factors.
But guess who builds EUV lithography machines? Advanced Semiconductor Materials Lithography (ASML)—yet another monopoly. And the thing with monopolies: without competition to keep them in check, they can price their products however they see fit.
Competition is bound to come, but these things take time. Industry giant Intel is reportedly investing in EUV lithography to begin in-house production, and Chinese manufacturers are forced to adapt and make their own processors due to the economic sanctions placed by the Trump administration.
Prices for PC and smartphone parts won’t stay up forever. The AI buzz will have its time. Monopolies will rise and fall. But until then, go get the gamer in your life a few parts for their build while you still can.
