10 Primary Reasons Why is RAM so Expensive? [Explained]

Written By Farhan Max

Since the performance of a computer relies on RAM, Quality and efficiency are indeed for RAM manufacturing.

The usual demand for RAM among the root user and other smart device industries is high. Specialized builds of RAM are becoming standard among all types of users, pushing the price higher.


This article will briefly discuss the possible causes and why RAM sticks are costly.

What are the Valid Reasons for Overpriced RAMs?

Since the Computer industries are not the only client of all RAMs, our demands for RAM are vast in IoT, Smart Electronics, the Phone industry, Storage Manufacturing, SmartWatch, Robotics, scientific research, etc.

Therefore, such cases are only possible with RAMs, which forcefully influence the RAM price, causing a bump in the price.

Here are the distinct reasons why RAMs are getting more expensive over time:

1. Higher Demand & Less Supply

Demand for RAM is gradually rising, primarily because of its production limitations. Only three companies, Micron (Crucial), Samsung, and Hynix, are the major manufacturers of RAM chips that must meet the demand.


So, the RAM-Chips shortage impacts the retail price of RAM sticks, which is outrageously expensive.

2. Production & Design Complexity

Manufacturing RAM isn’t easy or speedy enough to fill up users’ requirements. Plus, different platforms require specific shapes and factors like DDR variation, Size on laptop & desktop, mobile RAM chip, BUS speed, etc.

DDR3 is limited to 1066 MHz, whereas DDR4 can push up to 3600 MHz, which will cost the user more. Fitting the whole memory chips into a small form factor is also challenging and complex, directly affecting the price.

3. R&D Cost

Computer and chip manufacturing companies invest big bucks in R&D (Research & Development). Otherwise, it’d be impossible to revolutionize technology and RAM upgradation.research-developmen-cost

Improvement from DDR3 to DDR4 is a huge success which is also efficient and beneficial for users like us.

We expect DDR5 RAMs to be mainstreamed in 2023, as compatible motherboards are already in the market.

4. Countless Usage Scope

AI & automation are the familiar elements of our daily life, requiring smart devices with Micro-Processor and RAM. But the significantly rising electronic & gadget market demand puts more pressure on finite RAM manufacturers.

Furthermore, the Robotics, Server Computers, and mainly phone industries require an enormous RAM chip. And they are also ready to pay more, which is a fundamental reason of expensiveness of RAM.

5. Chip & Raw material Shortage

A world with limited resources & raw materials always adjourns the production process. Silicon is a limited material used to make RAM-Chips.chip-raw-material-shortage

Shortage of such material is affecting the price of RAM significantly.

6. Inflation

Inflation is commonly responsible for the price hike in every country and state. The price of our daily needed products is also affected by inflation.

Like other products, RAM manufacturers fall into uneven inflation rates, and prices go crazy. The foreign exchange rate is also a big concern for RAM’s expenses.

7. Gaming & Professional Demand

Gamers, 3D modelers, animators, and scientists usually need more RAMs to operate smoothly. Modern gaming computers and Workstations need special RAMs with heatsinks, called Gaming RAM, which cost extra.gaming-professional-demand

For ultimate performance, NVMe SSDs are impeccable and adopt a DRAM frequency, providing a system boost on data transfer speed. So, more use of RAM makes it more expensive anyway.

8. System Urge

Remember, Windows XP could run with only a Gig of physical memory. Then Windows 7, 8, 8.1, 10, and 11 came one after another, demanding more RAM for their visual and functional richness. Browsers like Chrome also require lots of space in RAM, although Chrome has a feature like Tab Discarding to run on small RAM.

However, you can use Linux distros that don’t demand a hefty amount of RAM to play high-graphics games or edit 4K videos on your device.

9. Aesthetics & Modern Display

The technology of display panels is surprisingly developing with time, leading us to 4K and even 8K resolution displays. We developed panel technology from CRT to LCD>LED>VA>IPS and huge AMOLED displays, which require excessive computing power demanding more RAM.aesthetics-modern-display

And when it comes to aesthetic choice, people always desire RGB & ARGB-enabled RAMs. Which also costs excessively, even though performance is the same.

For your convenience, here’s a list of the best Aura Sync-compatible RAMs that’ll give you excellent performance while illuminating with stunning visuals.

10. Labor Crisis & Political Decay

During the COVID situation, the world economy was uncertain. The labor crisis became a challenging issue for all industries. RAM manufacturing industries were not above this situation, so this is a big enough issue for the rise of RAM prices.

China is a significant production outsourcing for most circuit and chip-based manufacturing companies; as a result, the political clash between America and China negatively caused impacted RAM prices.

Does Premium Tier RAM Worth Buying?

RAM speed became a considerable fact after the launch of DDR4 memory. DDR4 has a 70% higher data transfer rate that can reach up to 3600MHz. If your processor supports high RAM frequency, you can push your RAM up to 5333MHz according to your rig.

So, If you have a processor and motherboard that support Overclocking, higher-tier RAM with lower CAS latency can boost your experience to a new level.


How much RAM is Overkill?

For an average user, eight gigs are enough, and 16 gigs are a safe choice. But 64 GB is overkill for non-professional users.

Why is RAM more expensive than hard disk?

Ram is used to run a program with high-speed data transfer speed, but hard disk only stores data. It is the semiconductors in RAM that make it expensive.

Does increasing RAM increase FPS?

Games run on the RAM, so enough RAM must give you more FPS while running a high graphics Game.

Why is DDR4 RAM so expensive?

After the release of 7th gen Intel processors & AMD Rayzen, DDR3 sales went down, and excessive demand for DDR4 is the cause behind expense.


A component’s expenses depend on many parameters and situations. Some of those stay neutral, and some vary over time. RAM is a crucial component widely used in various electronics; The authorities should improvise proper and fair material use to ensure minimum waste.

Spending money on expensive RAM is not justified for every computer user, but it’s always good to know that quality products survive longer than cheaper ones.

Please let us know your opinion and suggestion in the comment box below. You can ask for more here too.

About The Author
Farhan Max is a tech geek with a particular interest in computer hardware. He's been fascinated by gaming since childhood and is now completing his undergraduate studies while researching and testing the latest tech innovations. Alongside his love for all things geeky, Farhan is also a skilled photographer.

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