Lower Saxony in Germany, Rafael Advanced Defense Systems, and Aurelius Capital signed a Letter of Intent to Purchase Volkswagen’s Osnabruck Plant, allowing Israeli Defense Company to set up production of Iron Dome parts in Germany.
Signed at the plant on Monday, the agreement will transform the Volkswagen facility in Osnabruck into an innovative center for security and defence solutions. The center will bring together German engineering, industrial capital and high quality standards.
The German magazine WirtschaftsWoche first reported the news and D&T confirmed it. This is a departure from the original plans, in which the German automaker was to work with Rafael for production of the parts. Qatar, Volkswagen’s biggest foreign shareholder, blockaded that plan. D&T has been told that Qatar was also against this deal but the German government moved forward.
After the declaration of intent is signed, all the parties will engage in detailed negotiations and assessments of the regulatory requirements. D&T believes that the statement of intent is a first step in the process to procure the missile defence system by Berlin, the second European country to purchase the system.
Osnabruck’s plant employs 2300 workers and makes the Porsche Cayman, Porsche Boxster and T-Roc Cabriolet. Volkswagen is expected to leave Osnabruck in 2027. While the Tamir interceptor will no longer be produced there, other military equipment, such as launchers and generators, will.
Iron Dome, originally designed to intercept short-range missiles, has now become a key component in Israel’s multiple-layered defence system.
Its modular design allows for seamless integration of additional layers of defense. The system can be operated independently, or in conjunction with a larger air defense network, including the Arrow system (Arrow 2 or Arrow 3), which intercepts missiles beyond the atmosphere of Earth, and David’s Sling, which intercepts tactical missiles and medium to long range rockets as well as cruise-missiles launched at distances of 40-300 kilometers. Rafael also manufactures the Iron Beam Laser Defense System which is operational on Israel’s north border.
“Defense today, Tomorrow and Well Beyond”
Olaf Lies Minister-President for Lower Saxony stated that this partnership “creates realistic employment opportunities that are long-term and highly qualified at a site that has been synonymous with industrial excellence for 125 year.”
Lies also said that “the security environment of the country has fundamentally changed.” Germany and Europe need to strengthen their security and defense capabilities and gain more independence. It is both an opportunity and a duty. Osnabruck has a role to play in this. It has been repeatedly proven that the workforce is capable of achieving outstanding results. “We are building on this strength.”
Rafael is active in Germany since over 20 years. It has a large presence with subsidiaries such as Dynamit Nobel Defence and EuroSpike Gmbh.
Rafael Advanced Defense Systems President and CEO Yoav Tourgeman said the partnership is part of an ongoing relationship between the two countries, “in the hope that technology would be produced fully in Germany to protect Germany as well as Europe.”
The technology that is at the core of this partnership was designed for today’s defense, as well as tomorrow and beyond. “Our outstanding, combat-proven technology is constantly evolving to stay ahead of threats and provide highly reliable defence,” added he.
Aurelius Capital is a joint venture between Alon Lifshitz, Tomer Jacob and Michael Rogers. Former NSA Director Michael Rogers as well as former IAF Commander Maj. (res.) Amir Eshel, former Mossad vice director Udi lavi.
Aurelius is proud to be a partner of Rafael in transforming an advanced auto manufacturing facility located in Osnabruck, Germany into a world-class defense production centre. The groundbreaking technology of Rafael, as well as the partnership between the Government of Lower Saxony and Volkswagen, made this initiative possible. The goal of the project is to enhance security in both Germany and Israel, while also creating value for everyone involved. Jacob stated in a press release that this is just the beginning of a long-term strategic partnership.
Aurelius is believed to have been a major player in negotiations. It is anticipated that Lower Saxony will take the site over and create new businesses there.
German defenses
Germany also bought Israel’s Arrow 3 in response to Russia’s invasion of Ukraine and the proliferation of advanced weapons systems.
In November 2023 Germany signed a $3.5 billion Arrow 3 deal, which was the biggest defense contract ever in Israel’s history. The two nations signed an additional $3.1 billion contract in December to increase interceptors and launchers.
On June 30, the Bundeswehr revealed that a second Arrow air defence battery would be located in greater Kaufbeuren, Bavaria. The site will house ELM-2080 Green Pine Block C Radar to track and detect threats. The second location would complement the initial battery at Fliegerhorst Holzdorf/Schonewalde, south of Berlin, the capital. This was the first deployment of the system outside Israel.

Apple’s next-generation iPhones are likely to be accompanied by an unwelcome change: A higher price. The supply chain powerhouse’s price increase would signal that memory prices are on the rise and there is no way to avoid them.
It’s “chipflation”, or even “RAMageddon”: the shortage has reversed decades of declining memory prices that made consumer electronics powerful, without dramatically increasing their price. According to AlphaSense, the terms “memory price” and “memory scarcity” were used in 473 transcripts of company meetings last quarter. It seems that the entire industry has been working to fix this problem. We’re still years from seeing a solution.
AI, it is commonly believed, is to blame for the rise in energy costs and job losses. But AI also contributes to a rise in prices of smartphones, game consoles, even gaming systems.
The shortage began long before ChatGPT became popular — it was only exacerbated by AI’s insatiable appetite for RAM. This market was created by a complex and profitable restructuring of the memory sector within an industry that had been struggling to keep pace.
Manish Bhatia – president and CEO of Micron – one of three major memory makers – told The Verge that “we need to increase wafer capacity.” It’s a different situation for the industry compared to many years ago, when technology was enough to meet the demands.
Memory manufacturers have been able to increase their production for years by adding more chips per wafer. These gains, however, were decreasing and took longer to reach. Micron, despite the surge in electronics sales during pandemics, concluded that there was a more fundamental problem. Technological advancements alone were not enough to meet long-term demands. The manufacturers would need to build new, massive facilities in order to handle more wafers.
The memory industry collapsed. The demand for computers, phones, and tablets had been pushed forward by the pandemic era. Consumer spending was weakened and manufacturers left with surplus inventory. The companies lost money, and their plans for expansion were slowed.
When the market started to recover, the generative AI unleashed an enormous wave of demand that was far greater and memory intensive than the manufacturers ever expected.
Memory business is highly concentrated as well. According to Counterpoint’s estimates, three manufacturers control 90 percent of this market. This leaves the rest of the world reliant on just a few companies for the distribution of limited resources between AI infrastructure and consumer products. Counterpoint estimated that Samsung would control 39 percent of memory in 2026’s second quarter, followed by SK Hynix with 26 percent and Micron with 25 percent.
Memory in your computer or phone can be divided into two categories. The DRAM (dynamic random-access Memory) temporarily stores the data that a device requires to open apps, load webpages or run software. NAND flash memory is used to store files and photos for a longer period of time.
It’s not just as easy as saying that data centres consume RAM. “RAM isn’t the same.”
In AI data centres, processors are heavily reliant on high-bandwidth DRAM, also known as HBM.
David Naranjo told The Verge that it’s “not as simple as claiming data centers consume RAM.” The RAM is different.
HBM is able to move huge amounts of data much more quickly and efficiently by stacking memory and connecting it with advanced packaging and connections.
The production is more expensive, but the sale of it can be more profitable. Nvidia, AMD and other tech giants such as Meta and Microsoft are willing to pay a lot for this technology to run their AI systems.
HBM consumes a lot more capacity in manufacturing than DRAM. On large circular wafers of silicon, memory chips are produced in bulk. A finished HBM product requires more silicon because it stacks several larger chips. Micron says that to produce a certain amount of HBM, it takes roughly three times the number of wafers required for conventional DRAM.
AI is increasingly favored by incentives. Memory makers don’t have to guess how many laptops or phones will be sold in a year, but can secure multi-year contracts with some of the richest companies on earth.
Jaejune Kim said, “We are engaging in conversations with customers and prioritizing those that can guarantee future committed captive demand”, on Samsung’s most recent earnings call.
AI also increases demand for DRAM. The makers of phones and computers want to install smaller AI models on their products, which requires more advanced conventional memory. To support these capabilities, future models could require substantially more memory.
The three biggest memory guys are basically allotting the capacities that they possess to these companies.
On the most recent company earnings call, Song Hyunjong, President of SK Hynix (another of the three major memory makers), said that “as AI is spreading across different services, such as search and coding tools, demand for memory has increased.” We are seeing a shift in the demand structure where AI memory is growing alongside conventional memory.
Both Micron and Samsung have stated that they are committed to DRAM conventional. Micron’s Bhatia said to The Verge it is still the majority of Micron’s wafer production. HBM has been able to attract AI clients who are willing to commit to long-term contracts due to limited space, a surging market, and a surge in demand.
SK Hynix reported a record 76 per cent operating margin in the last quarter. This is up from 41percent a year ago. Micron also posted a new record of 85percent gross margin. Samsung’s semiconductor profit, on the other hand, has risen roughly 250 times from a previous year.
“It’s more profitable,” Naranjo said. The three memory experts are basically allocating their capacity to these companies.
Counterpoint believes that DRAM for smartphones will increase by around 56 percent in 2026’s first quarter compared with a quarter before, and grow at a rate of 83 percent during the second quarter. Counterpoint estimates 16GB DRAM would cost $42 for smartphones in 2025’s second quarter, but $181 one year later. This is a more than 300% increase.
These aren’t Apple’s exact prices — few other companies enjoy greater leverage when it comes to suppliers — but they show just how much the cost of components for a high-end smartphone has changed.
It is obvious that you need more memory. It takes years for this to be accomplished, even when you work fast.
Micron has been demonstrating how much “more” work is involved.
The company began pouring concrete in July for the planned manufacturing facility near Syracuse, upstate New York. The site, when completed, will have 2.4 million sq ft of cleanroom area, which makes it the largest semiconductor production site in US History.
The cleanrooms, where the chips will be made, will only take up a small fraction of the total construction. This is about the same size as 350 football fields.
Bhatia, speaking to The Verge, said that by the end of the project we will have constructed between 15 and 20 million square feet to accommodate the 2.4 millions square feet cleanroom. Micron designed a fab where the cleanroom occupied only one floor in a five story building.
Micron doesn’t expect meaningful output until 2030
It will also house the vast array of utilities, such as air handling, water treatment, electricity, and power distribution systems, that are required to run it.
Although Micron was able to pour concrete ahead of schedule it took over two years. After its CHIPS Act Grant for New York had been confirmed in March 20,24, the company started permitting, broke ground on January 2026 and poured concrete six months later.
Construction is divided into three main phases. Bhatia stated that preparing the soil can take between six and nine months. The concrete facade and structure can take another 18 months. The most difficult stage is after the building has been built: the installation of the complex network of plumbing, electrical and mechanical systems needed to run a semiconductor factory.
These systems are required to transform an industrial complex into a place where even a microscopic particulate cannot land on a chip.
Bhatia gave a good sense of what precision is required.
He said: “Imagine building New York State without any ants in it.” We do this repeatedly on each wafer.
Memory is not produced by completing the building. Micron plans to test and activate essential systems such as power, ventilation, and water by the end 2028. Then, in 2029, Micron will begin pilot production and move manufacturing equipment into place. It is not expected that the company will produce meaningful results until 2030. The journey to permit production would have taken six years, even if the timeline was accelerated.
It is anticipated that the new Idaho fab will begin producing wafers in 2027.
Micron spends enormous sums to accelerate the development process. It almost doubled its capital spending from one year ago to reach more than $25 billion in this year.
Micron cannot pinpoint a point where the supply will finally catch up with demand, because it continues to increase almost as fast as manufacturing can.
Bhatia stated that the demand is growing so quickly, they don’t know when this will end.
Counterpoint does not expect that capacity will catch up to demand in a best-case scenario until 2027, or even 2028. IDC, a market research firm, also expects a shortage that will last until 2027 or even early 2028.
The makers of PCs and smartphones can’t continue to absorb the component costs, which have increased by several fold. The price can be raised. They can produce fewer products. You can make fewer devices. They can also focus on devices that are more expensive and have a profit margin large enough to cover the additional cost.
Microsoft raised Xbox prices again by $100-150, citing the rising cost of memory. Some models are now $300 more costly than they were at launch. Microsoft has also increased the prices of certain Surface Pro tablets and laptops by up to $500. Meta has added $100 to its Quest 3 headphone.
Apple’s test is the most telling, as it would be the company best suited to survive a shortage. Apple’s size gives it a lot of leverage when dealing with suppliers. And its customers are willing to pay a premium price. Apple’s Macs and iPads have already seen their prices increase.
The iPhone is the focus of attention.
Bloomberg reports that Apple will not release its entire lineup in one go this fall. Instead, it is likely to launch the iPhone 18 Pro, Pro Max, and its first foldable iPhone alongside the iPhone 18 standard, and hold the iPhone 18 Air and the refreshed Air back until the spring of 2027.
Tim Cook referred to memory pricing as “a 100-year flood”.
Apple has concentrated its fall line-up at the highest end of the marketplace, where margins are the greatest. Counterpoint’s tracking of Apple’s supply chain shows that Apple is preparing 10 percent more iPhone 18 Pro units and Pro Max for the period September to December compared with the iPhone 17 Pro & Pro Max.
Apple said that higher memory prices had reduced the gross margin of its company in their last earnings call. The reason given was that supply issues, which included memory chips, were worsening. Tim Cook, then-CEO of Apple, referred to memory prices as “a 100-year flood” and cited “exponential rises” which had led Apple to increase its price.
The Wall Street Journal calculated that the iPhone 18 Pro would start at $1299. This is based on TechInsights’ estimates, which take into account component costs, and minimize margins. This would mean the iPhone 18 Pro costs $200 more. Samsung and Google both raised their starting prices for some phones this year by $100 each, but several of them also came with more storage.
Apple is in a better position than many companies to charge higher prices. Apple’s loyal customer base, its tightly integrated ecosystem and the size of its installed base make it more than just a phone. It is a luxury item. It has gained market share already by maintaining its price while competitors at lower levels raised theirs. It was almost commonplace in places such as China, which is the largest smartphone market on earth, to choose a high-end iPhone over cheaper alternatives.
Other manufacturers have worse options.
IDC and Counterpoint have already seen smartphone manufacturers reduce their expected shipment while moving to more expensive models. They can try to make more money per phone if they don’t have as many.
This means that there will be more OLED screens, AI capabilities, bigger memory configurations and other upgrades which can justify higher price tags. In fact, PCs and smartphone revenue could even increase as unit sales decrease.
AI doesn’t only increase the cost of electronics. Memory shortages are changing what electronics manufacturers make.
More supply will arrive eventually.
Samsung, SK Hynix and Micron all invest heavily in manufacturing. This investment will not bring about immediate relief, however. New facilities can take many years to construct.
SK Hynix has announced that it will invest 600 trillion won into its Yongin Semiconductor Cluster south of Seoul, a complex first announced in 2019. The company’s completion target was pushed up from 2045 until 2033. It says that it plans to double its production capacity in five years, but expects the demand for semiconductors to continue outpacing supply until 2030.
The Wall Street Journal reports that Samsung and SK Hynix plan to spend a total of 800 trillion won (or about $588 billion) on four new memory chip factories located in the southwest region of South Korea. Micron plans to invest more than $250 million in US manufacturing and R&D through 2035, including the New York and Idaho project.
In China, a fourth major player could also emerge. CXMT has built additional fabs. However, its technology still isn’t considered to be as advanced as Samsung, SK Hynix or Micron. Apple has been testing CXMT’s chips, but the Trump Administration would have to approve any business deals with CXMT.
Another possibility is the demand collapses first, and supply will not have to keep up. Memory manufacturers may find that their economics are drastically different if the AI bubble bursts.
This is still a hypothetical situation. Long-term agreements AI companies signed with memory providers make it easier to predict the near future.
Naranjo stated that “2027 looks pretty set and ready.”
IDC and Counterpoint expect the price increase to be slowed from its astronomical pace in the last year, to a single or double-digit rate. Slower increases don’t mean lower prices.
Nabila Popal told The Verge that “not only will prices not drop to levels of 2025, but they will stabilise at a new norm.” This new normal “is at least triple the price they were before.”
It takes years for new fabs to be built, and AI data centres as well as increasingly complex consumer electronics continue to demand more memory. Manufacturers have no economic incentives to prioritise cheaper consumer electronics compared to customers who are willing to commit to years of advance and pay handsomely for them.
Naranjo’s prediction was direct.
It’s unlikely to be a happy end anytime soon.

GMKtec has launched its flagship Mini Workstation, the EVO-X5 PRO, which rocks AMD’s fastest Ryzen AI MAX+ PRO 495 chip.
GMKtec Claims Its EVO-X5 PRO AI Workstation Offers 66% Faster CPU Orchestration and 40% Lower Cost Per Completed AI Workflow Versus NVIDIA’s DGX Spark
The EVO-X5 Pro builds upon GMKtec’s past EVO releases such as the EVO-X2 and the more recent EVO-X3. The EVO-X5 Pro is decked out, featuring lots of computing capabilities that can be used by professionals and AI users.
Packing the AMD Ryzen AI MAX+ PRO 495 “Gorgon Halo” SoC, the GMKtec EVO-X5 PRO comes with 16 cores and 32 threads based on the Zen 5 architecture. The chip operates at up to 5.2 GHz and packs 64 MB of cache. The chip is rated to operate between 45-120W, and GMKtec’s EVO-X5 Pro offers three power modes that users can switch between with ease depending on their AI tasks.
AMD’s flagship Gorgon Halo chip also comes with a tuned Radeon 8065S iGPU, which operates at up to 3000 MHz and offers 40 compute units, while the XDNA 2 NPU provides up to 55 TOPS of AI compute performance. All combined, the chip offers 131 TOPS.
In terms of memory, the GMKtec EVO-X5 PRO comes equipped with 192 GB of unified memory, which operates at 8533 MT/s speeds. The PC can dedicate up to 160 GB of memory to the GPU, making sure that users can run large AI models (300B+) locally. For storage, you can get up to 24 TB on the EVO-X5 PRO thanks to its triple M.2 2280 PCIe Gen4 array, each supporting up to 8 TB capacity.
As for the design, GMKtec’s EVO-X5 PRO comes with a CNC All-Metal chassis and an All-In-One Smart Function key. IO includes dual front USB4 ports, dual USB4 V2 ports on the rear (support for eGPU), 8K video output, dual USB 3.2, dual 10GbE Ethernet LAN ports, and an HDMI port. The Mini PC can be used in clusters using the onboard USB4 V2 ports.
The company has also made use of its latest Vapor Chamber heat spreader and a triple-fan cooling solution that adopts smart thermal control technology.
For software, GMKtec packs the EVO-X5 PRO with its own GMKtec Claw AI agent solution, and supports AMD Dash Remote Management technology through the RJ45 Dash network adapter, and a dedicated dTPM 2.0 security chip. The company hasn’t announced the pricing yet, but the PC will be launching next month in October.

The graphics benchmarks were conducted by enthusiasts using NVIDIA’s DLSS5 neural network rendering at 1440p. Testers were primarily interested in evaluating the nighttime ambience, street neon, and dynamic lighting of Palm City. Project was ran at 60 FPS target frame rate, which allowed for detailed analysis of geometry, contact shadows and artificial headlights scattering on wet surfaces.
The testing was performed on a computer that had the most recent hardware configuration. This system consisted of a 14-core Intel Core i5-13600KF, a GeForce RTX-4070 SUPER discrete graphics card, with 12GB video memory and 32GB DDR5 DDR5 RAM running at 6000MHz. It also included an ASRock Pro RS motherboard as well as a 2TB Crucial P5 PLUS solid-state drive. Gigabyte UD850GM power supply with 850W. This image was displayed on a Lenovo Legion 27″ OLED monitor, with a refresh of 240Hz.
Implementing DLSS 5 algorithms removed the defects in the TAA antialiasing. They also eliminated pixel flickering and restored the clarity of texture on the road surface. The neural network filters reworked reflection structures in paints and puddles to make light and shadow transitions physical correct. Hardware handled the tensor blocks calculations without input or frame rate lag.

US negotiators Jared Kushner, Steve Witkoff and others have arrived in Kyiv to continue discussions on ending the conflict in Ukraine.
Volodymyr Zelenskyy, Ukraine’s President, met with the two in Sophia Square in Kyiv, right in front of Kyiv’s Saint Sophia Cathedral. Zelenskyy hugged Witkoff and said: “It is good to see Steve.”
It is located a few hundred meters from Ukraine’s SBU Intelligence Agency, the site of a drone attack by Russia on Friday. This marks an intensification in a war that has lasted for over four years.
Witkoff & Kushner meet Zelenskyy a day after meeting Vladimir Putin, the Russian president for three hours in Moscow.
It is the first time that US envoys are visiting Ukraine. They have been to Russia before. This trip represents a new level of effort to bring an end to the conflict in Ukraine. However, details about any possible peace plan remain unclear.
According to reports, British national security advisors as well as French and German ones were in Kyiv Sunday morning before Witkoff’s and Kushner’s arrival.
The talks between Russia and Ukraine to end the war focused on Washington’s and Kyiv’s 20-point plan, which was presented in December. The two sides are unable to find common ground in several key issues, such as control of the east Ukraine territory.
An official from the White House said that on Saturday, the discussions with Moscow “discussed substantial plans for the next steps” to end the war. He said that an announcement will be made in the upcoming weeks.
Yuri Ushakov, a senior Kremlin aide, described the discussions as “extremely frank”. He said that there was an acknowledgment of the necessity to deal with “the roots of the conflict”.
Moscow and Kyiv agreed to abstain from striking each other’s capitals for three days in order to facilitate the negotiations. Zelenskyy stated on Sunday the Russian attacks on Kyiv’s main airports Friday night had thrown the US delegation’s plans to travel into Moscow out of whack.
Since Russia’s full-scale invasion began in February 2022, Ukrainian airspace is closed. Some visiting dignitaries travelled by land from neighboring countries.
Kyiv, and its surrounding area have been bombarded by daily drone attacks for over a week. This is the longest sustained assault on Ukraine’s Capital in recent months.
Capital now enjoys a respite from the strikes and alerts for air raids which had been a regular occurrence. However, other parts of country continue to be hit. Ukrainian authorities announced on Sunday at least 8 people had been killed in Ukraine and 69 others injured during the last day.
Ukraine faces a severe shortage of Patriot missiles made in the US that are capable of shooting down any incoming threats. Recent Russian attacks have involved new jet-powered drones capable of speeds up to 250mph. This makes them difficult to intercept.
The war has been going on for five years and many Ukrainians worry about what the winter will bring. Serhii Bekskrestnov is Zelenskyy’s adviser on defence technology. He told The Guardian this week that the government could consider evacuating older people from Kyiv because Putin has ordered Russian forces to “prepare for and execute mass strikes” against Ukraine’s energy infrastructure.
In recent weeks, Russia and Ukraine increased the use of missiles with long ranges to undermine morale within their respective countries.
Illia Dadik has done additional research