Shenzhen Huaqiang Predicts Moderating Storage Chip Price Growth
Shenzhen Huaqiang stated that while the pace of storage chip price increases is expected to moderate in the second half of the year, the market continues to face tight supply and strong demand. This trend is heavily driven by the massive expansion of AI infrastructure, which has siphoned off advanced manufacturing capacity. The continuous reallocation of memory capacity toward AI infrastructure creates structural shortages and higher costs for consumer electronics and PC markets. This dynamic reshapes the global hardware supply chain, putting severe margin pressure on budget devices. According to Omdia reports, memory (DRAM and NAND) now accounts for nearly 40% of PC bill of materials (BOM) costs, up from the normal 15%. Meanwhile, global PC shipments face significant downward pressure, with expected declines heading into late 2026 and 2027.
## BACKGROUND
Memory chips, encompassing DRAM and NAND flash, are essential semiconductor components used for data storage and temporary data access in electronic devices. The term 'AI infrastructure' refers to the specialized hardware, such as servers and data centers, built to train and run large artificial intelligence models. Advanced manufacturing capacity is increasingly siphoned toward producing high-margin memory types like HBM (High Bandwidth Memory) for AI, drastically reducing the supply available for traditional consumer products.