ASUS Considers DRAM Production to Combat Global Memory Shortage
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The global memory shortage, exacerbated by a strategic shift towards artificial intelligence, may compel PC giant ASUS to take a radical step: establishing it’s own DRAM manufacturing capabilities as early as 2026.This move, first reported by Persian technical media outlet Sakhtafzarmag, would represent a profound departure for the company, historically focused on assembly rather than component manufacturing.
The AI-Driven Memory Crisis
The current memory crisis extends beyond typical market fluctuations.As January 2025, DDR5 prices have surged 172% in the spot market, with consumer kits experiencing price increases ranging from 89% to 130% between September and November. Order fulfillment rates have plummeted to 70%, a significant drop from the usual 100%, leaving manufacturers with only two to three weeks of inventory on hand.
The impact of this shift is already being felt.in December, Micron announced the discontinuation of its Crucial brand in the consumer RAM and SSD market, redirecting all production towards AI and data centers. This withdrawal of a major player intensifies pressure on PC assemblers, who are facing increasingly limited supplier options and escalating prices.
HP’s Enrique Lores recently indicated that PC prices could rise in the second half of 2026, with memory accounting for 15% to 18% of the total cost. Lenovo has already warned customers of price increases effective january 1st. TrendForce analysts have revised their 2026 laptop shipment forecasts downward, now predicting a 2.4% decline, a stark contrast to the previously expected 1.7% growth.
A Bold Bet on Vertical Integration
ASUS’s potential move towards DRAM production represents a “crazy bet” on vertical integration, a significant industrial challenge. While the rumor requires cautious assessment, it aligns with a logical response to the current crisis. The Taiwanese manufacturer already markets memory modules under its TUF and ROG brands,but currently relies on chips sourced from other producers.Establishing complete production lines would be a substantial undertaking, requiring billions in investment and years of technical refinement.
The primary objective would be to secure a stable supply for ASUS’s core product ranges – ASUS, ROG, and TUF – prioritizing survival over immediate profitability, unlike the memory giants focused on maximizing AI margins. Should ASUS successfully meet its internal demand, it could potentially become a supplier for other PC manufacturers, disrupting the currently constrained market.
Partnership with CXMT as a Potential Path
The practicalities of establishing DRAM production within a timeframe of just a few months are daunting. Several observers suggest a potential partnership with ChangXin Memory Technologies (CXMT), the sole domestic DRAM manufacturer in china. CXMT showcased its first DDR5 and LPDDR5X products at the IC CHINA show in November 2025, achieving speeds of up to 8000 MT/s and supporting all standard formats. By the end of 2025, the company was producing 720,000 wafers per quarter and aims to capture 10% of the global DRAM market by the end of this year. Experts interviewed by ZDNet Korea estimate its G3 technology, with a 17.5 nm engraving fineness,boasts an efficiency of around 80%.
Geopolitical Considerations and Long-Term Forecasts
A merger with or partnership with CXMT would circumvent the lengthy process of establishing a new semiconductor factory, but introduces significant regulatory hurdles. The United States banned federal government purchases of CXMT chips in 2022, and the US Commerce Department is reportedly considering further sanctions in 2024. ASUS would need to navigate complex geopolitical constraints alongside commercial imperatives.
Sectoral forecasts remain pessimistic. Analysts generally anticipate the shortage will persist until the fourth quarter of 2027, or even 2028. Both SK Hynix and Samsung have indicated they have no immediate plans to significantly increase DRAM production, preferring to maintain high margins and avoid overcapacity should AI demand falter. Memory production is projected to increase by only around 23% in 2026, while demand is expected to jump by 35%, further widening the supply-demand gap.
Under these conditions, the idea of vertical integration by PC assemblers, while ambitious, no longer appears far-fetched. It underscores the severity of a crisis reshaping the memory market, and whether ASUS will officially confirm these plans remains to be seen.
