Memory chips are now more expensive than compute chips on a per-area basis

This story highlights how surging AI-driven demand has pushed DRAM prices so high that memory silicon now generates more revenue per unit area than TSMC's most advanced logic wafers, a striking reversal in the traditional cost hierarchy of chipmaking. This matters because it signals a structural shift in semiconductor economics, potentially squeezing margins for device makers and raising costs for consumers across PCs, smartphones, and AI hardware. It also underscores how memory scarcity, not just logic chip advances, is becoming a critical bottleneck in the tech supply chain.

• DRAM chips are now more expensive per square millimeter than TSMC's advanced N2/N3 logic wafers, according to analyst estimates.
• The comparison mixes wafer processing costs (logic) with potential revenue value (memory), so it's not a perfectly apples-to-apples measure.
• Rising AI demand is driving memory prices to record highs with no signs of near-term relief, impacting the broader tech and consumer electronics market.