Global Memory Chip Shortage Hits AI and Consumer Tech Industries
A severe global shortage of memory chips is reshaping the technology landscape, forcing artificial intelligence and consumer-electronics companies to battle for limited supplies. Prices for the crucial components that store data in everything from smartphones to AI servers have soared, sparking widespread concern across the sector.
Supply Shortage Spreads Across Markets
In Japan, electronics retailers are now limiting how many hard-disk drives customers can buy, while Chinese smartphone makers are warning of price hikes. Major tech firms, including Microsoft, Google and ByteDance, are racing to secure chip supplies from manufacturers such as Micron, Samsung Electronics and SK Hynix. According to TrendForce, prices in some memory categories have more than doubled since February. Traders are also entering the market, betting that prices will continue to rise.
This crunch affects nearly every type of memory, from flash chips in consumer gadgets to high-bandwidth memory (HBM) used in AI data centres. TrendForce data shows that inventory levels at suppliers of DRAM, the main memory type for computers and smartphones, have fallen sharply — from up to 17 weeks in late 2024 to as little as two weeks in October 2025.
Pressure Builds on Tech Giants and Economies
Experts warn that the shortage is no longer just a technical issue but a potential macroeconomic risk. Analysts say it could delay global digital infrastructure projects and dampen AI-driven productivity gains. With US tariffs and inflation still pressuring economies, the rising cost of memory chips could add further strain.
AI’s explosive growth has made the problem worse. Following the launch of ChatGPT in 2022, demand for data-centre capacity surged, prompting chipmakers to shift production towards high-end AI memory and away from traditional DRAM. This move has left manufacturers of smartphones, PCs and consumer electronics short of supply.
Industry Scramble and Soaring Prices
Companies are now scrambling to correct course. Samsung and SK Hynix have announced new investments, though new factories will not be operational until 2027 or 2028. SK Hynix has warned that shortages will last until at least late 2027. The company’s chairman, Chey Tae-won, said requests for supply have become overwhelming, with some clients unable to operate without guaranteed memory deliveries.
OpenAI has reportedly struck deals with Samsung and SK Hynix for its ambitious Stargate project, which could require almost 900,000 wafers per month by 2029 — roughly double the world’s current HBM output.
In the meantime, Samsung has raised memory prices by up to 60%, while Chinese tech giants like Alibaba, Tencent and ByteDance have sent senior executives to South Korea to lobby for chip allocations. “Everyone is begging for supply,” one industry source told Reuters.
Consumer Impact and Market Reactions
The chip crunch is beginning to hit consumers directly. Chinese smartphone brands like Xiaomi and Realme have warned of handset price increases of up to 30% next year. PC and gaming components are also becoming scarce and expensive, with some Japanese shops limiting memory purchases to prevent hoarding.
Prices for 32-gigabyte DDR5 memory kits in Tokyo have jumped from 17,000 yen in October to over 47,000 yen. In the United States, traders dealing in recycled memory chips are reporting record sales, largely to Chinese buyers seeking alternative sources.
As supply chains tighten, even small component traders and second-hand markets are booming. The global scramble shows no sign of slowing, with analysts expecting memory prices to climb another 20% in early 2026.
with inputs from Reuters
