Simon Willison — 2026-05-22#

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Simon highlights a fascinating economic ripple effect of the AI boom: an impending spike in consumer electronics prices due to silicon wafer capacity constraints. As AI data centers demand more High-Bandwidth Memory (HBM), manufacturers are shifting production away from standard consumer RAM, which is already threatening the availability of cheap smartphones globally.

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[The memory shortage is causing a repricing of consumer electronics] · Source Simon links to an excellent breakdown by David Oks explaining why devices using memory are about to get significantly more expensive. With only three major memory manufacturers operating with fixed wafer capacities, the explosive growth in AI data centers is pushing High-Bandwidth Memory (HBM) allocation from 2% to an expected 20% by the end of 2026. Because a single gigabyte of HBM consumes over three times the wafer capacity of standard consumer RAM (DDR/LPDDR), consumer device memory is severely constrained—an effect already hitting the sub-$100 smartphone market that is critical to regions like Africa and South Asia.