Memory chip prices skyrocket at Huaqiangbei

Huaqiangbei, home to the world's largest electronics wholesale market, is witnessing a sharp and sustained increase in the prices of memory chips and storage products. This trend is expected to drive up the cost of consumer electronics, including smartphones, tablets, and personal computers.

According to merchants in Huaqiangbei, the price of memory components began rising significantly in August, with the surge accelerating through September and continuing to the present. The spike has been so pronounced that "hoarding memory" has become a hot topic on Chinese social media.

Memory chips and storage products on display at a retail booth in Huaqiangbei amid a wave of rising prices driven by global AI demand. Shenzhen Economic Daily

Industry analysts point to the artificial intelligence (AI) boom as the primary driver. Memory manufacturers are increasingly prioritizing the supply of high-performance chips for AI servers, creating a supply squeeze for the consumer market.

"The increase, especially for large-capacity models, has been astounding," said Cai Zhaojie, a vendor who builds PCs for enterprises and professional users. "Some memory chips have doubled in price in just three months."

Cai provided a striking example. A 32-gigabyte DDR5 memory kit — a high-speed component used in gaming PCs and servers — that was priced around 1,000 yuan (US$140) in September had jumped to 1,300 yuan by mid-October and currently sells for 1,799 yuan.

This price hike is directly impacting consumer behavior. "The number of clients planning to build new computers has decreased," Cai noted. "Some have postponed their purchases or opted for second-hand equipment instead."

He added that vendors are struggling to manage customer frustrations, as the situation is beyond their control. "It's making our business very difficult," he said.

According to industry experts, the core issue is a fundamental shift in the tech industry. As AI-generated content expands from text to complex songs and videos, data capacity requirements are exploding. This situation is fueling unprecedented demand for high-performance memory, leaving everyday consumers and PC builders to bear the cost.

With AI demand showing no signs of slowing, industry experts predict storage prices will continue to rise through the fourth quarter of 2025.