Memory now accounts for approximately two-thirds of AI chip component costs (epoch.ai)

• Memory accounts for ~66% of AI chip component costs
• HBM is the main cost driver
• Supply constraints push prices up
• Chip designers seek alternatives

"Memory components, especially HBM, now make up about two-thirds of the material cost of AI chips. This is due to rising demand for high-performance memory and limited manufacturing capacity. The cost shift affects chip pricing and supply chain strategies."