The DRAM memory industry is experiencing a significant structural shake-up. Until October 2025, memory chip prices were relatively stable, but a sharp increase has begun, and it is set to continue. According to TrendForce, conventional DRAM prices are expected to rise by 58% to 63% quarter-on-quarter before the second quarter of 2026 concludes. The driving force behind this surge? Artificial Intelligence (AI).
Market Dynamics: A Shift in Focus
The three dominant memory chip producers—South Korea’s SK Hynix and Samsung Electronics, along with America’s Micron Technology—have shifted approximately 70% of their production lines to high-bandwidth memory (HBM) to meet the skyrocketing demands from AI-focused data centers. This drastic redirection has led to immediate shortages in standard DDR4 and DDR5 memory types, which are the most utilized in consumer devices. Consequently, the prices have surged; Gartner notes that RAM costs have increased from 16% to 23% of a laptop’s total price. In light of this trend, users now have a crucial ally: Chinese manufacturers.
Chinese Manufacturers: A Bright Spot
Chinese companies like Yangtze Memory Technologies Co. (YMTC) and Changxin Memory Technologies (CXMT) are stepping into the breach as traditional players redirect their resources. YMTC holds a notable 13% global market share in NAND chips, marking it as a significant competitor to established brands such as Samsung and Micron. One factor aiding its rise is the U.S. sanctions that stifle American and South Korean companies from supplying advanced chips to Chinese clients.
Aggressive Pricing Strategies
Meanwhile, CXMT has adopted a highly aggressive pricing strategy, allowing it to amplify its DRAM chip production capacity nearly fivefold over four years. This expansion has propelled its global market share to a commendable 7.6%. While major foreign manufacturers exploit high margins driven by AI demand, Chinese companies are focusing on sourcing and supporting local businesses. This localized approach stabilizes supply and pricing, insulating them from the premium costs enforced by their larger counterparts.
Emergence of New Players
Amid these dynamics, Chinese memory brands like Gloway and KingBank are making headlines by introducing new DDR5 modules packed with locally sourced SDRAM chips. With configurations of eight chips per module, they are offering 24 GB modules and higher capacities in kits, making them competitive options for end-users.
Global Reach and Future Prospects
The influence of Chinese memory chips is beginning to cross borders. Notably, Corsair has started incorporating CXMT components into its Vengeance product line, while tech giants HP and Dell are homologating CXMT chips for their devices. This trend is undeniably positive for consumers, as it introduces additional choices in a market traditionally dominated by a few key players. However, whether CXMT DRAM will achieve widespread adoption remains uncertain amidst escalating AI-induced shortages. The market clearly shows an appetite for new participants, and if YMTC and CXMT can bridge the gaps left by their competitors, it could signal a new era in the memory market.
Image | Intel
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