GoKawiilThe maker of fully modular laptops, Framework, is getting hit by a sharp increase in memory prices, and the numbers are pretty astounding. Its LPCAMM2 modules have nearly doubled: The 32GB jumped from $439 to $800, and the 64GB jumped from $849 to $1,600.
In a July 22 news post on navigating the volatile silicon market, Framework’s CEO Nirav Patel said that the cost hikes from the supplier go “far beyond anything we had predicted and anything we’re able to absorb without placing our ability to operate at real financial risk.”
In short, the memory market has become so volatile that Framework is passing on the higher costs to buyers rather than absorbing the losses itself. That part’s not surprising.
But in perhaps a less conventional twist, to manage the orders it already took for its Framework Laptop 13 Pro, the company is rejiggering some presold configurations rather than canceling them. That means when inventory runs out, it’s downsizing configurations on preordered models and adjusting the price. Or, more concretely, for later preorder batches that were set to ship with 64GB, it’s swapping in 32GB modules at the original 32GB price.
So yes, some customers will end up with a different memory configuration than they originally picked. But they won’t get the sticker shock. Framework is also allowing customers to cancel their preorders for a full refund if the new configuration doesn’t meet their needs.
The memory crunch
LPCAMM2 is a somewhat newer memory module format analogous to SODIMM, which can be used in laptops to allow upgrading or replacing the module. That’s in contrast to most lightweight laptops, where the memory is part of a system on a chip or soldered to the mainboard.
In a briefing with Micron, one of the biggest manufacturers of memory dies and modules, before it announced LPCAMM2 at CES 2024, my notes ended with “data center” scribbled on the bottom.
That’s because, as the cost of AI data center memory rises, the pain is spread across a larger ecosystem. According to Framework’s own blog post, “the boom in data center construction and server manufacturing is consuming immense amounts of energy.”
Dubbed “RAMageddon,” the crunch we’re experiencing is for anything created in a semiconductor fab, resulting in shortages of components for consumer laptops, smartphones, external storage devices, gaming consoles and more. That’s because fab resources are — or are expected to be — reallocated toward whatever’s ultimately the most profitable. And that pressure carries all the way down the supply chain, significantly boosting prices on the devices we buy.
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