Global Memory Chip Shortage Spurs Price Surge Amid AI Boom
A severe global shortage of memory chips is driving up prices for consumer electronics as major technology companies scramble to secure supplies. The crisis, reported on December 28, 2025, stems from AI data centers consuming massive quantities of RAM chips, forcing manufacturers to prioritize lucrative AI contracts over consumer markets.
Memory chip prices have more than doubled in some segments since February 2025, according to market research firm TrendForce. Tech giants including Microsoft, Google, and ByteDance are urgently negotiating with memory-chip makers Micron, Samsung Electronics, and SK Hynix to secure allocations.
The shortage affects nearly every type of memory, from flash chips in USB drives and smartphones to advanced high-bandwidth memory for AI processors.
Micron Technology CEO Sanjay Mehrotra stated that “the aggregate industry supply will remain substantially short of the demand for the foreseeable future.“
The company reported better-than-expected quarterly earnings last week driven by higher memory prices. Analysts warn consumers to expect price increases on smartphones, PCs, gaming consoles, and other electronics in the coming months.
The next major memory fabrication plant, being built by Micron in Idaho, won’t come online until 2027, meaning the shortage could persist for years.
Source: NPR