Chip Crisis Impact on Broadcast and Production Workflows
It’s Not Just RAM and GPUs Being Affected. I speak with OXI Media teammate Rich Narain to get his insights on FPGA and supply chain issues impacting high server and workstation costs.
Andrew Warman
4/15/20264 min read
I was talking last week with fellow OXI Media teammate Rich Narain about the current RAM and CPU crisis. He raised a couple of interesting points related to broader supply chain issues affecting chip vendors, product planning, and the pricing changes we can expect in the short to medium term.
FPGAs and Their Use of RAM
In my April 4, 2026 article (check it out here!), we discussed the road to the current high prices for RAM and GPUs used in production and broadcast applications. Rich noted:
“In the past, when manufacturers transitioned to, say, DDR4 memory, DDR2 and DDR3 were still available. With AI, demand now exceeds manufacturers’ capacity for delivering faster memory – think DDR5 and the upcoming DDR6, expected in 2027. Manufacturers have reallocated more of their capacity to newer, faster memory, shortening or ending the life cycle of older generations. They are investing in expanding capacity, which will take years. To secure supply, companies are entering into multi-year agreements of three to five years, with rumors of some prepaying for current and future capacity. This affects the availability of memory in distribution channels for lower-tier customers.”
In the previous article, I suggested looking at FPGA (field-programmable gate array) and ASIC (application-specific integrated circuit) options where appropriate to offset rising RAM and GPU costs. While that remains valid, Rich pointed out:
“There is a knock-on effect for FPGA manufacturers. In conversations with these vendors, they have hinted they are considering alternative solutions to embedded HBM (high-bandwidth memory) on the FPGA, moving toward discrete (external memory modules) due to the shorter lifecycle of memory. The business case for supporting the traditional seven- to 10-year lifecycle of embedded HBM FPGAs is being eroded, particularly for industries that require longer lifecycles and have lower volumes compared to AI customers.”
For production and broadcast vendors and their customers, this means HBM memory for FPGAs “on chip” is subject to RAM supply chain availability. As AI increasingly dictates memory lifecycles, FPGA lifecycles are also being reduced. Where lifecycles were previously seven to 10 years or more, they are now being shortened to four or five years, prompting consideration of discrete memory instead.
Sidebar: AI Processing Efficiency
In AI data centers, power consumption remains one of the biggest constraints on scale and performance. Solving this significantly improves efficiency. Chip design in this context relies on advanced packaging, where CPUs and HBMs sit on the same chip, connected by a silicon interposer or bridge.
Ongoing improvements in these methods, along with increased density of HBM modules per chip, driven by manufacturers such as Samsung, TSMC and Intel, will improve data center efficiency over time. However, capacity constraints remain, prompting the need to build new fabs.
Some FPGA vendors are therefore looking to remove HBM from their designs, making it external to the chip. While this is not applicable to all FPGAs, it places additional pressure on designers and product teams. Shorter lifecycles also reduce the time to recoup R&D costs – the production and broadcast vendor’s ROI - leading to higher prices. This double-edged effect – higher FPGA pricing and increased costs from external RAM – will ultimately be passed on to customers.
Higher Chip Prices on the Horizon
Geopolitical tensions are affecting the availability of key resources such as helium, sulfur, aluminum, LNG (liquefied natural gas), and oil, not just RAM and GPUs. Limited access to, and disruption of, the Strait of Hormuz is reducing supply and driving prices higher.
Since these resources are critical to chip manufacturing, there will be downstream impacts on supply and pricing. Here’s a brief overview:
Helium — Used in wafer etching and cooling, helium is critical for maintaining precise temperatures and preventing chemical reactions. Roughly one-third of the global supply comes from Qatar.
Sulfur/Sulfuric Acid — Beyond fertilizer and mining, sulfuric acid is a key cleaning agent for wafers. About 25% of global production is affected by disruptions in the Middle East.
Aluminum — About 20% of U.S. supply and 8% of global supply comes from the Middle East. It is used in heat sinks and electronics packaging. Recent conflicts have pushed aluminum prices to a four-year high.
LNG/Oil — Used to power production facilities. Roughly 20% of global oil passes through the strait, increasing operating costs for energy-intensive fabrication facilities.
Resellers Sitting on Inventory?
If you’ve been watching consumer RAM pricing over the past few weeks, you may have noticed prices softening slightly. They are still well above levels from six months ago, but some reports suggest a modest 5% drop in the first two weeks of April 2026.
This may be partially tied to recent developments around OpenAI’s letters of intent rather than firm purchase orders, as well as Google’s TurboQuant. Additionally, some vendors appear to be sitting on inventory. This primarily affects consumer markets, although slower AI data center buildouts may also be contributing.
The result is a short-term pricing dip. Once inventory is reduced, prices are expected to rise again.
Conclusion
There does not appear to be meaningful relief in the short to medium term. Pricing and availability remain challenging, with the potential for further disruption ahead.
We will continue to monitor the situation and provide updates as new information becomes available.
Sources:
18 Mar 2026 – The AI boom is dangerously dependent on helium https://www.scientificamerican.com/article/the-iran-war-disrupts-global-helium-supply-and-artificial-intelligence-chip/#:~:text=The%20closure%20of%20the%20Strait,Group/VCG%20via%20Getty%20Images
12 Mar 2026 - Iran Conflict and the Global Semiconductor Supply Chain
6 Apr 2026 – Iran, the Straits of Hormuz, and the Distress Risk Ahead
12 Mar 2026 - How the Iran Conflict Is Rippling Across Global Supply Chains
18 Mar 2026 – Plastics, aluminum, and microchips: What the closure of the Strait of Hormuz costs the world economy beyond oil and gas
10 Apr 2026 - DDR4 and DDR5 prices are down on the spot market but only by a teeny, tiny amount
https://tech.yahoo.com/computing/articles/ddr4-ddr5-prices-down-spot-161633322.html
13 Apr 2026 - RAM price tracking 2026: Daily lowest price on DDR5 and DDR4 memory of all capacities — here are the best deals during the AI-driven pricing crisis
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