Dec 12, 2013

What is driving up the cost of RAM?

Over the past few months, the cost of DRAM has been going up significantly. For most of my adult life the trend has been the other direction, over time costs have steadily decreased. Why is the cost trending up so much recently?

Rousseau has a good answer for this. This article may also have some tidbits of interest.

"Two months ago, a fire at a Hynix factory created a shortage in DRAM inventory and exacerbated the gradual climb in DRAM prices. While the fire wasn’t all that severe — Hynix has sworn that its memory capacity will ramp back to full in fairly short order — its impact on the market has been significant. In early September, the price of 8GB of Corsair memory was sitting at $72. Today, it’s jumped up to $93. Other components show similar increases — Kingston 8GB packs have gone from $66 to $79, and Corsair’s 16GB RAM packs are up to $150, from $130."


There are a couple of factors. There was a recent fire at Hynix, who is one of the major DRAM manufacturers. Also, production is shifting from DRAM to NAND flash, plus production is about to shift from DDR3 to DDR4, which will cost more, especially initially. Lastly, and I’m not entirely certain why this is the case, RAM prices tend to spike around the end of the year, and then trend downwards until about mid-year.

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