The world’s rush into AI is creating an unexpected crisis: we’re running out of memory chips. From the flash inside your phone to the advanced HBM feeding NVIDIA’s AI accelerators, supplies are tightening fast, and prices are soaring.
Across Japan, electronics shops are limiting how many drives or memory kits customers can buy. In China, smartphone makers warn they may have to raise prices. And in the U.S., tech giants like Microsoft, Google, Amazon, and ByteDance are scrambling to secure long-term supply from Samsung, SK Hynix, and Micron.
Why It’s Happening
After the explosion of interest in generative AI, memory makers shifted factories toward high-bandwidth memory (HBM) for AI chips. But that move left traditional DRAM and flash supply dangerously low, just as demand for PCs, smartphones, and data centers began to rise again.
Inventory levels have collapsed from months to just 2–4 weeks, and some prices have more than doubled since February.
Consequences
- AI projects could be delayed because data centers can’t get enough memory.
- Smartphones and laptops may get more expensive through 2025.
- Inflation pressure could rise as electronics costs increase.
- Only the richest tech companies may afford the enormous price hikes.
SK Hynix says the shortage may last through late 2027, and many chipmakers warn new factories won’t be ready until 2027–2028.
A Global Scramble
Everyone is competing for supply, sometimes desperately:
- Samsung and SK Hynix have their 2025–2026 HBM fully sold out.
- Google, Amazon, Microsoft, and Meta have placed open-ended orders: “Send us whatever you can.”
- Chinese giants like Alibaba and Tencent are sending executives directly to Korea to negotiate.
- Prices for some memory kits in Japan have risen by 200% in a matter of weeks, pushing shoppers into the second-hand market.
Even PC shops in Akihabara are rationing memory modules to prevent hoarding.
A Long Road Ahead
Chipmakers are ramping up investment, but building new memory lines takes at least two years. Meanwhile, AI infrastructure spending continues at record speed, meaning the gap between supply and demand will keep widening.
