The chart of the week illustrates that the price of DDR5 8Gb DRAM, a type of memory chip commonly found in personal electronic devices, remained relatively stable for several years before increasing dramatically in late 2025 and early 2026. The sharp rise in semiconductor chip prices was caused by rapidly growing demand combined with limited supply. Major chip manufacturers, including Samsung Electronics, SK Hynix, and Micron Technology, produce much of the world’s memory chips and are expanding production, but forecasts indicate that demand will continue to exceed supply through 2028. The surge in demand has been driven by advances in artificial intelligence, cloud computing, smartphones, and data centers. At the same time, supply chain disruptions and fierce competition for advanced chips have made it difficult for manufacturers to meet demand. As a result, consumers and businesses are likely to pay higher prices for computers, smartphones, and other electronic devices that depend on memory chips.