Micron Warns of Prolonged Global Memory Chip Shortage, Impacting AI and Consumer Electronics
Micron Technology, a key supplier of memory chips for Nvidia and other AI giants, has issued a stark warning: the global semiconductor shortage will intensify and persist beyond 2024. The announcement comes as the company breaks ground on a $100 billion mega-fab complex in New York—a project bolstered by $6.2 billion in CHIPS Act funding and 35% tax credits.
The four-facility complex, each unit spanning 10 football fields, won't produce chips until 2030. Meanwhile, Micron's Boise headquarters expands with two new fabs—one operational by 2027—as part of a strategy to relocate 40% of DRAM production stateside. Executive VP Manish Bhatia notes that AI-driven demand for high-bandwidth memory is cannibalizing supply, leaving phone and PC manufacturers scrambling to secure multi-year contracts.
Chinese smartphone makers Xiaomi and Oppo have already slashed forecasts as component prices surge. The crunch may worsen post-2026 when anticipated IPOs of AI firms like OpenAI could further distort supply chains.
