The world continues to suffer from a global shortage of memory hardware as data centers and large US multinationals continue to use existing power supplies for generative artificial intelligence.
The closure of the Strait of Hormuz – a key global shipping route – has only exacerbated this shortage as supply lines have been devastated by the ongoing war in Iran.
According to a report from Digitimes (via PC Gamer ), several major motherboard manufacturers are facing “collapse” due to a tough market, including MSI, Gigabyte and ASRock.
Motherboard companies are suffering
While motherboards themselves do not rely on memory technology, consumers are much less likely to buy new components unless they can afford the other exorbitantly expensive components they need to upgrade their computers.
In other words, why would you buy a new motherboard if you can't afford the memory that goes into it? If you were optimistic, they might buy a new motherboard now in anticipation of a price drop, but who knows if that will happen in a post-AI world.
The report also suggests that upgrades are becoming less important for mid- to high-end PCs, which, combined with high prices, has reduced consumer interest in purchasing new motherboards.
ASUS has sold only 5 million motherboards so far this year and expects to sell a total of 10 million in 2026. Compared to the 15 million motherboards sold last year, this represents a significant drop in business. If the 10 million estimate turns out to be correct, it will be ASUS' worst year in over a decade.
SSD CEO Says “Consumer Electronics Are Done” As Flash Memory Shortage Continues
Phison's CEO has seen companies beg suppliers for memory.
Like many consumer-focused technology companies, ASUS believes a shift toward enterprise-level customers will offset any decline in its core business. We've seen some hardware executives suggest that the consumer era is over as multinationals sign multi-year contracts with component manufacturers to ensure consistent supply for years to come.
All in all – like everything related to gen AI – this series of events seems largely negative for consumers and hobbyists. It's hard to know what the future of PC manufacturing looks like, especially since recent geopolitical events have revealed how vulnerable global trade really is.
- Date of establishment
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August 4, 1986
- Headquarters
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Zhonghe, New Taipei, Taiwan
