The tech world is facing a critical memory chip shortage, and while companies at CES are eager to showcase innovations, the reality is far more pressing: a severe scarcity of DRAM (dynamic random-access memory) threatens future product availability and affordability. This isn’t just an issue for hardcore PC builders; laptops and phones are also at risk as manufacturers prioritize AI data centers over consumer devices.
Several companies are taking bold steps to mitigate the crisis, although success isn’t guaranteed. These efforts hinge on shifting strategies, reducing dependence on cloud-based AI, and convincing the memory market to reinvest in consumer-grade DRAM production.
The AI Demand Drain
The current shortage isn’t random. The surge in demand for high-bandwidth memory (HBM) for AI data centers has led major manufacturers to deprioritize DRAM production – the type of memory used in everyday laptops and smartphones. This imbalance forces consumers to rely on cloud-based AI services like ChatGPT because their devices lack the necessary memory to run these models locally.
Dell COO Jeff Clarke acknowledged the severity of the situation, stating that current conditions are “the worst shortage I’ve ever seen.” Prices have already surged, with DRAM increasing by 40% in late 2025 and projected to rise by another 60% in early 2026. Major manufacturers like Asus and Dell have announced price increases and configuration adjustments to cope with the scarcity.
Innovative Solutions: On-Device AI and Thermal Redesign
Despite the grim outlook, two companies are attempting to disrupt the status quo. Phison, a Taiwanese controller manufacturer, has developed aiDAPTIV, an SSD cache that can effectively expand memory bandwidth for AI tasks. This allows manufacturers to reduce DRAM capacity in laptops (e.g., from 32GB to 16GB) without significantly impacting performance, potentially alleviating the supply strain. Early support from MSI and Intel suggests rapid implementation may be possible.
Ventiva, meanwhile, is tackling the issue from a thermal perspective. Their fanless cooling system removes bulky cooling components, creating space for additional DRAM modules within laptops. CEO Carl Schlachte argues that optimizing physical space for memory is a key overlooked solution. The idea is to make on-device AI processing so attractive to consumers and businesses that it drives demand for DRAM, incentivizing manufacturers to reinvest in its production.
The Long-Term Gamble
The success of these strategies depends on a collective effort from laptop manufacturers, Intel, AMD, and memory producers. Convincing them to prioritize on-device AI and shift focus back to DRAM requires a unified message and market demand. If these efforts fail, the consequences are dire: inflated prices, reduced performance, and continued reliance on expensive cloud services.
As Schlachte put it, “We blow our inheritance money on the data center… and they’re going to rent this back to you.” The tech industry is at a crossroads: either redirect resources toward empowering consumers with local AI capabilities or surrender control to a handful of cloud-dominant companies. The outcome will determine the future of computing for years to come.
