Micron’s Warning: Global Memory Chip Shortage Intensifies, Extending Beyond 2026
The crunch just got crunchier. Micron Technology, a titan in the memory chip arena, signals a deepening supply crisis with no end in sight this year.
Not a Glitch, But a Structural Gap
This isn't a temporary blip. The shortage stems from a perfect storm—explosive demand from AI data centers, the relentless rollout of 5G, and a supply chain still playing catch-up. Production simply can't keep pace.
The Ripple Effect Across Industries
Expect delays and price hikes. From smartphones and laptops to next-gen gaming consoles and smart cars, every sector reliant on DRAM and NAND flash memory faces the squeeze. Manufacturers are scrambling to secure allocations.
A Finance Guy's Cynical Take
Meanwhile, Wall Street analysts are busy upgrading price targets—because nothing boosts a stock like the promise of scarcity and higher margins. It's the oldest play in the book.
The bottom line? Buckle up. This memory drought is set to define the tech landscape for the foreseeable future, forcing innovation in design and sourcing while testing the patience of consumers and CFOs alike.
Chinese phone makers cut forecasts as prices begin to rally everywhere
On Friday, the Chinese news site Jiemian said that three of China’s biggest phone brands (Xiaomi, Oppo, and Transsion) are cutting their targets for 2026. They didn’t respond to questions, but the report said Oppo could drop shipments by 20% because memory prices are going up too fast.
In December, Counterpoint Research said global smartphone sales could fall 2.1% this year. Higher chip costs are messing with production timelines. Dell and other PC companies are also saying they expect more delays and fewer units built.
The memory business is now focused on AI. Micron, Samsung, and SK Hynix all saw their stocks rise last year. But now the products are sold out. SK Hynix said it has no chips left for 2026. Micron said the same thing about its AI-focused memory for this year.
In December, Micron dropped its Crucial brand for consumer memory. The reason? They want to make sure there’s enough supply for Nvidia and other large AI customers. Demand from that sector is so high that Micron is now racing to build more fabs both in the US and in Asia.
On Saturday, Micron said it’s spending $1.8 billion to buy a plant site in Taiwan that already has some infrastructure. That will save time and get them making DRAM wafers faster. Production at that site will start in the second half of 2027.
DRAM is the type of memory that powers chips made by Nvidia and Intel. It’s a key part of high-bandwidth memory, which lets AI systems do complex tasks. Bhatia said the Taiwan and other Asian sites will keep working on new chip technology. But most of the added capacity is coming to the United States.
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