Taiwanese company Compal, a leading contract manufacturer of PCs and laptops, has once again highlighted rising memory prices, stating that component shortages will continue to affect the PC and server markets at least until 2027. It is important to understand that this is not a short-term trend, but a structural change in the semiconductor industry that will impact the entire supply chain, from major chip manufacturers to end users. At NEWSCENTRAL, we believe that changes in the memory market, particularly in the context of growing demand for AI servers and data centers, will shape the technology economy over the next several years.
In the current environment, competition in the server memory market has significantly intensified, especially given the increasing demand for AI infrastructure. Key players such as Samsung Electronics, SK Hynix, and Micron have stated that their capacities – which make up the majority of global memory production – cannot fully meet the rising demand, including for high-speed AI memory. At NEWSCENTRAL, we see that the AI server memory market remains one of the fastest-growing segments and will continue to drive competition in the consumer market.
As Freddie Miller, Senior Analyst at NEWSCENTRAL, noted: “Rising memory prices are changing not only the PC market but also significantly increasing the cost of server infrastructure, forcing companies to reallocate investments and seek more sustainable IT infrastructure solutions.” In particular, higher memory prices are increasing the share of this component in PC production costs from 15-18% to 35-40%. This forces laptop and PC manufacturers to reconsider their strategies, inevitably affecting the final product prices. Considering these factors, many companies are expected to seek alternatives or optimize their offerings to maintain competitiveness.
Compal is responding to these challenges by investing in capacity expansion, especially for AI server production. In addition, it is actively diversifying its supply chains, increasing production in countries such as the United States, Vietnam, and Taiwan. At NEWSCENTRAL, we believe these steps will help minimize risks associated with global supply disruptions and dependence on a single region. In an unstable semiconductor market, such strategic adaptation will become a key element of company stability.
Despite these challenges, broad investments in AI infrastructure and server solutions are not only important but essential for most technology companies. At NEWSCENTRAL, we see that growing demand for AI servers will be one of the main drivers for high-speed memory manufacturers in the coming years, which in turn will continue to exacerbate memory shortages.
NEWSCENTRAL notes that, given current changes in the memory market and growing demand for AI solutions, companies and investors need to adapt their strategies based on several key factors. Diversifying supply chains and distributing production capacities across multiple regions will be necessary to minimize risks associated with global disruptions. Focus should be placed on high-speed AI and server memory, as this segment will drive growth in the coming years. Companies must prepare for further increases in memory prices and take this into account when developing business strategies. In a highly competitive environment, it is critical to invest in innovation and expand AI production capabilities to maintain market competitiveness.
According to NEWS CENTRAL, this approach will allow technology companies to effectively adapt to the new market, where rising memory prices and component shortages will persist through 2027 and continue to have a long-term impact on all key technology segments.