If you tried upgrading your PC recently, your wallet probably felt the sting. The massive boom in artificial intelligence has turned the component market upside down. To keep up with AI demands, factories switched over to high-bandwidth memory, starving the regular consumer lines. This sent retail prices for common hardware like DDR5 memory through the roof. However, despite generally pessimistic projections, the former head of Samsung Electronics believes that a big RAM price drop will arrive sooner than we think.
RAM price crash could star in second half of 2027, former Samsung chip chief predicts
The prediction comes from Kye-hyun Kyung, one of the top experts in the semiconductor industry and current executive advisor at Samsung. He shared an eye-opening forecast during his presentation at the National Academy of Engineering of Korea forum in Seoul. According to Kyung, the current wave of high prices will hit a major turning point in the second half of next year.
The driving force behind this correction is a massive manufacturing push coming from China. Companies like ChangXin Memory Technologies and Jiahe Jinwei are investing heavily to ramp up their domestic chip production. Kyung noted that if these aggressive investments succeed, the market will soon see a massive wave of new supply. This will naturally force hardware costs back down to earth (via Wccftech).
Too much of a good thing?
The scale of this upcoming supply wave is enormous. Projections show that global manufacturing capacity could hit six million silicon wafers per month by late 2027. While regular PC builders will certainly welcome cheaper store tags, Kyung warned that this rapid growth carries a distinct risk for the broader tech industry. A massive surge in supply can easily flip today’s shortages into a severe oversupply phase.
Worse yet, the stability of this whole system relies on a very fragile foundation: Big Tech’s massive spending on artificial intelligence. Kyung explicitly cautioned that if tech giants stop seeing massive financial returns on their AI software investments, corporate boards will pull back on hardware orders. This shift would cause overall memory demand to shrink dramatically.
A new strategy for survival
To survive this looming market correction, Kyung urged local industry leaders to rethink their long-term strategies. It’s shortsighted to live on the profits of the current memory boom, he emphasized. Instead, the advisor said, manufacturers have to pivot to deep-tech breakthroughs, expand their footprint in the global fabless design space, and build sovereign AI frameworks. Taking these measures will protect them from the volatile geopolitical game.
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