A global memory chip shortage may hit consumer electronics and automotive manufacturers next year as chipmakers divert capacity to meet surging AI demand. On an earnings call, SMIC co-CEO Zhao Haijun said customers are hesitating to place early-2026 orders because they don’t know how much supply memory vendors can deliver, signaling rising uncertainty across downstream markets.
Analysts say the rapid build-out of AI servers—powered by Nvidia processors and high-bandwidth memory (HBM)from suppliers like SK Hynix and Micron—is absorbing vast capacity. AI system builders are paying premium prices for HBM, prompting memory producers to prioritize high-margin orders over low-cost chips used in smartphones, PCs, and vehicles.
The situation is worsened by industry under-investment during the 2023–2024 memory downturn. New fabrication lines are coming online, but analysts say they won’t ramp fast enough to prevent tightening supply.
Prices are already rising: Samsung has reportedly increased memory chip prices by up to 60% since September, and TrendForce expects a “robust upward pricing cycle” across 2026.
Industry researchers warn that shortages have begun affecting low-end smartphones and set-top boxes, with broader consumer impacts—higher retail prices and weaker demand—likely to follow.
