The AI boom unleashes a "supercycle" of memory chip shortages

Source: CritpoTendencia Original Title: The AI boom unleashes a “supercycle” of memory chip shortages Original Link: The accelerated growth of artificial intelligence is putting unprecedented pressure on the semiconductor industry. This advance has triggered a supercycle of demand, causing shortages and a sustained increase in memory chip prices.

As a result, the entire technology chain is affected, from data centers to mass-consumer devices, creating logistical and financial challenges for both manufacturers and end users.

Manufacturers under pressure from AI demand

The rise of AI is leading major semiconductor manufacturers to redirect resources and capacity toward high-bandwidth chips, such as HBM modules, which are essential for artificial intelligence applications and the training of advanced models.

An example of this is the recent investment by Micron Technology, which will allocate more than $9.6 billion to build a new plant dedicated to advanced memory chips for AI in Japan.

As a result, the production of conventional memory—including DRAM and NAND—has decreased, affecting the availability of components for servers, personal computers, and mobile devices.

In addition, major tech companies and leading cloud service providers anticipate an exponential increase in demand for memory chips.

This has driven early purchases, inventory accumulation, and faster restocking cycles, further intensifying the pressure on the global supply of traditional memory.

Shortages and rising prices in the technology chain

As a direct consequence, the prices of DRAM modules and other memory chips have seen significant increases during 2025. The impact is especially strong on DDR5 memory used in servers and high-performance computers, as well as on essential components for smartphones.

Moreover, this price surge is beginning to be passed on to the final prices of electronic devices, and projections indicate that the effect could intensify in 2026 if supply-side pressure continues.

Hardware, automotive, and medical equipment manufacturers are already warning about possible component shortages and higher production costs, which could reshape the dynamics of the global technology market.

Supercycle outlook and possible adjustment scenarios

Industry analysts anticipate that shortages and upward pressure on prices could persist for several quarters. This is happening because AI infrastructure continues to expand at an accelerated pace, while manufacturers have yet to ramp up production capacity to the same level.

As a result, if demand continues to consistently outpace supply, the supercycle could easily extend through the end of 2026.

However, there is also the possibility of an unexpected shift. A rapid increase in production or a slowdown in demand could quickly create a supply surplus. That scenario would trigger a rapid price correction and force leading manufacturers to rethink their strategies.