The global AI boom is causing a severe memory chip shortage. Tech companies struggle to secure supplies, and prices are soaring. The shortage threatens AI projects, consumer electronics, and digital infrastructure worldwide.
Memory chips, including DRAM and high-bandwidth memory (HBM), are in short supply. Microsoft, Google, ByteDance, and other giants compete for limited stock. Japanese stores are limiting hard-disk purchases, while Chinese smartphone makers warn of higher costs. Analysts say the shortage could last until late 2027.
Read more: UAE, Singapore lead global AI adoption
The shortage stems from AI demand and production shifts. Manufacturers like Samsung and SK Hynix prioritize high-end HBM for AI chips. Meanwhile, production of older memory chips for PCs and smartphones slowed, creating a supply gap. Prices have doubled for some products since February.
Consumers and retailers feel the impact directly. In Tokyo, memory product limits are enforced, and some items sell out. Chinese phone makers like Xiaomi and Realme may raise prices by 20–30%. Recycled and secondhand memory markets are booming due to scarcity.
Read more: Global AI summit divides nations
Experts warn the crisis affects more than tech. AI infrastructure growth may slow, inflation could rise, and smaller companies risk losing access to essential chips. Producers are expanding capacity, but new factories will take years to come online. The industry faces urgent pressure to balance AI demand with consumer needs.