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TechnologyGlobal issues

Global AI boom takes its toll on Singapore's chip sector

Patrick Fok
March 17, 2026

A global pivot toward high-end AI hardware is tightening supplies of mainstream memory chips and raising costs for repairs, upgrades and everyday devices.

https://p.dw.com/p/5A2EW

Singapore's electronics repair sector is being hit hard by a dramatic surge in RAM prices — in some cases up to 500% — as global chip manufacturers shift production toward high‑margin artificial intelligence (AI) components. The resulting shortage and extreme price volatility are causing customers to delay upgrades, repair shops to lose business, and traders to minimize inventory.

With DDR5 RAM kits jumping from around $200 (€174) to over $1,000, even Singapore's AI‑training initiatives are feeling the strain as learners hesitate to invest in high‑spec laptops. Industry analysts warn that the memory "crisis" could shrink global PC and smartphone markets by double digits, making everyday tech upgrades another casualty of the AI boom.