AI boom sends memory chip prices soaring in Estonia by 200%

Memory chip prices in Estonia have surged, driven by soaring demand for artificial intelligence infrastructure. This rise is already impacting consumer spending and electronics pricing across the country. The global push for AI data centres has sharply increased the need for memory chips. Around 70 percent of all chips now go to these facilities. This has strained supplies and pushed prices up.

A 64GB DDR5 memory module now costs up to €1,500, about three times more than a year ago. The higher costs affect nearly all modern electronics, from smartphones to laptops. Apple has already raised prices for some MacBooks and iPads by roughly 20 percent.

Distributors in Estonia are cutting back on inventory purchases because of the rising expenses. Telia has reported a drop in unit sales as consumer electronics become more expensive. Building new factories to ease the shortage takes years, so supply cannot adjust quickly. The price surge is squeezing both businesses and buyers. Consumer electronics are becoming more costly, and sales are declining. The situation is unlikely to improve in the near term due to the long lead times for new production facilities.