Interview on the memory crisis: "Hardware procurement has become a lottery"

The memory market crisis also affects, and especially, German medium-sized companies. The iX editorial team spoke with Frank Benke, who is responsible for global IT at the special machine manufacturer HAHN Automation Group.

There has been unrest in the memory market for three months. Main memory is scarce and expensive. How long has the situation been so dramatic?

There have always been price fluctuations in memory. Phases of oversupply and low margins were followed by scarcity and increased costs. However, the current situation is extreme. The oversupply during the Corona crisis was followed by a shortage at the end of 2025, which dramatically worsened at the beginning of 2026, leading to extreme price jumps. Prices have sometimes doubled and tripled. Equally dramatic is the uncertainty of actually receiving goods.

Is the shortage limited to Germany?

No! As an internationally positioned medium-sized company, we feel the procurement problems at all locations, including the USA. Suppliers are not delivering or are delivering late. They are under pressure from their suppliers, who are also managing the shortage and empty warehouses for main memory because there are simply too few systems available.

Where do you see the cause?

Supply shortages after 2024 are currently meeting a construction boom in data centers, triggered by hyperscalers and the AI hype.

How does this affect things specifically?

Massive price increases of 200 percent and more, and extremely short-term offers. In general, IT budgets are naturally capped. No one can absorb such price increases. Hardware procurement has become a lottery. The goods seem to disappear somewhere presently, only to reappear in the numerous new data centers. Hyperscalers seem able to pay any price.

What does that look like in practice?

A host that should have cost around 24,000 euros four months ago was offered to us in January for 37,000 euros, but could not be obtained. From another source, it was now offered for 49,000 euros. You can't work or plan sensibly like this.

That sounds like the situation on the wholesale market. Daily prices depending on supply?

Exactly. Offers are valid for three days. However, offers are still not fulfilled because others pay more.

How are you and your company reacting to the situation?

I have sworn my team to replace as little as possible over the next two years. If absolutely necessary, we look at the used market. Systems from leasing contracts are often still good for several years of operation; they are affordable and, above all, available. Those who are familiar with their systems, know the spare part numbers and system components, have a clear advantage. They can assemble their memory themselves from various sources. Even Ebay is now used as a source.

How is your company reacting to the situation?

All postponable projects are currently not being implemented but have been postponed. Only the bare essentials are being purchased.

When will the situation calm down again?

I don't see any potential for relief until 2028. By then, the production ramp-up of component manufacturers should be effective. Especially for memory and NVMe modules.

Mr. Benke, thank you for the interview!

(mma)