AI Demand Fuels Unprecedented Memory Chip Shortage
The global memory chip shortage has escalated to unparalleled levels in early 2026. Major manufacturers, including Samsung Electronics, have issued warnings that supply constraints will precipitate significant price hikes across the electronics industry throughout the year.
The root of the crisis lies in AI data center infrastructure, which is consuming an excessive share of global memory production capacity. Leading manufacturers such as Samsung, SK Hynix, and Micron have pivoted their production towards high-bandwidth memory (HBM) used in AI accelerators. This shift has led to acute shortages of conventional DRAM and NAND flash memory, which are essential components in consumer electronics.
DRAM prices have skyrocketed by approximately 171% year-over-year. Samsung, for instance, has increased the prices of its 32GB DDR5 modules from $149 in September 2025 to $239 by early 2026—a 60% increase. Industry analysts are projecting that DDR5 prices could surge an additional 30% in Q4 2025 and another 20% in early 2026.
The shortage is anticipated to affect smartphone, PC, and consumer electronics pricing throughout 2026. SK Hynix reported in October 2025 that its HBM, DRAM, and NAND capacity is “essentially sold out” for 2026. Micron, on the other hand, has completely exited the consumer memory market to concentrate on AI and enterprise customers.
PC makers are reportedly exploring alternative suppliers, including validation of products from Chinese manufacturer ChangXin Memory Technologies (CXMT). This move comes as concerns mount that DRAM pricing and availability will remain strained through 2026 and potentially into 2027.
Source: Network World