Memory Shortage Increasingly Affecting Printer and Copier/MFP Industry

A few weeks ago in a Xerox earnings call, executives mentioned something that appears to be increasingly affecting the entire print and copier/MFP industry – as well as other industries that use computer memory, such as the auto industry. It’s a severe  RAM memory and semiconductor chip shortage that is expected to linger for some time to come. 

The shortage is said to be driven by surging AI demand, leading to increased component costs, potential production delays, and pressure to raise prices. While AI infrastructure consumes the majority of supply, the shortage affects all smart electronics, including printers and MFPs, which rely on these components. 

According to Techbrew, as of 2021, just three companies, Samsung, SK Hynix, and Micron, control over 90 percent of the world’s RAM and right now, they’re allocating more supply to AI infrastructure than personal devices. Suppliers are said to be planning to build new memory fabrication plants, but increases in supply likely won’t arrive for years.

Key impacts on the printer industry include: 

• Production and supply-chain constraints: The industry is experiencing constraints due to high bandwidth memory (HBM) and DRAM demand for AI, affecting overall semiconductor availability.
• Rising costs: Memory-chip prices have surged, with some analysts forecasting DRAM price hikes of over 50 percent.
• Price increases: Manufacturers are considering or implementing price hikes for devices as component costs rise.
• Strategic Adjustments: Companies are managing the crunch by stockpiling, adjusting, or, in some cases, leveraging managed services (such as in the PC and printer markets) to handle the supply volatility. 

The last time printer and MFP companies dealt with a major component shortage, was a semiconductor shortage caused by COVID-19 pandemic. That shortage last about three years, from 2020 to 2023. Printer companies responded in some interesting ways – allocating semiconductors to higher arginine products such as A3 MFPs, and in the case of Canon, releasing toner cartridges with memory chips. 

Outlook

Analysts and memory manufacturers like Samsung and SK Hynix expect these supply constraints to persist well into 2027 or 2028. This long-term shortage is expected to lead to a “product winter” characterized by fewer new hardware launches and potentially the exit of some companies from certain product lines.

According to Nikkei Asia, HP Inc., along with Dell, Asis, and Asus, are considering sourcing memory sources from Chinese sources for the first time. HP previously relied primarily on suppliers across the United States, South Korea and Taiwan.