Major memory producers Samsung, SK Hynix, and Micron are prioritizing high-bandwidth memory for AI data centers, leading to a shortage of conventional DRAM and NAND for smaller electronics brands. Industry executives anticipate that this supply constraint may persist until 2028.
For smaller manufacturers like Fairphone, Framework, and Jolla, memory costs can represent up to 60% of total production expenses. TrendForce reports that conventional DRAM contract prices are expected to rise by 13–18% this quarter, following a 93–98% increase in the first quarter of 2026.
The CEO of SK Hynix has predicted that 2027 will be the most difficult year for supply in the industry's history, with demand likely to exceed capacity beyond 2030. Unlike major corporations, smaller firms lack the contractual leverage to secure long-term supply agreements.
To manage the crisis, companies are shifting strategies by prioritizing full system builds over individual components, introducing paid upgrade tiers, and revising product specifications. Additionally, the rise of the gray market for chips has forced firms to increase spending on authentication.
Counterpoint Research projected in June 2026 that global smartphone shipments will decline by 13.9% to 1.08 billion units for the year. This trend represents the sharpest annual drop on record, complicating the financial landscape for independent hardware brands.
