AI Demand Sparks Memory Chip Shortages Until 2027

A surge in demand for memory chips driven by artificial intelligence applications is creating widespread shortages that could persist until at least 2027, forcing manufacturers to raise prices on smartphones, laptops and other consumer electronics worldwide.

The imbalance stems from the rapid expansion of AI data centers, which require specialized high-bandwidth memory, or HBM, to process vast amounts of data. Leading producers, including Samsung, SK Hynix and Micron, control nearly 90 percent of the global dynamic random-access memory, or DRAM, market. These companies have shifted production priorities toward HBM to meet AI needs, reducing output of conventional memory used in everyday devices. As a result, supply constraints emerged in late 2025, leading to steady price increases for components essential to consumer products.

Industry analysts estimate that manufacturers must boost annual production by about 12 percent in 2026 and 2027 to close the gap, but current plans call for only a 7.5 percent increase. Even with these efforts, suppliers are projected to fulfill just 60 percent of total DRAM demand by the end of 2027. One major chipmaker has exited the consumer segment...