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#a8b7d17b
Topic
IDEA SIGNALS
Source
Simon Willison
Published
2026-05-22 22:01:31
Importance
★ 5/10 — radar 50

AI Data Centers Are Squeezing Cheap Device RAM

HBM demand is taking wafer capacity from DDR and LPDDR. Hardware costs will pressure low-end phones and device-heavy products.

[ KEY POINTS ]
  1. Only three major memory makers remain, so extra demand cannot be absorbed quickly by competition.
  2. HBM used about 2% of wafer allocation before; AI data centers could push it to 20% by end-2026.
  3. One GB of HBM consumes over 3x the wafer capacity of DDR or LPDDR, crowding out consumer RAM.
  4. Sub-$100 smartphones are already exposed. Apps targeting Africa or South Asia should keep low-RAM devices in scope.
Originalsimonwillison.net/2026/May/22/memory-shortage/#atom-everythingRead original →

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