An acute global shortage of memory chips is forcing AI and consumer-electronics firms to compete for limited supplies, with Japanese stores capping hard-disk drive purchases and Chinese smartphone makers alerting to price rises. Tech leaders like Microsoft, Google, and ByteDance are vying for allocations from producers including Micron, Samsung, and SK Hynix.
The surge in AI demand has tightened memory chip supplies worldwide, creating a broad crisis. This shortage affects everything from flash chips in USB drives and smartphones to high-bandwidth memory (HBM) that powers AI processors in data centers. According to market researcher TrendForce, prices in certain segments have more than doubled since February.
In Japan, electronics retailers have started restricting how many hard-disk drives customers can buy, while Chinese smartphone producers are cautioning about impending price hikes. Three individuals knowledgeable about the talks say that companies such as Microsoft, Google, and ByteDance are rushing to lock in supplies from manufacturers like Micron, Samsung Electronics, and SK Hynix. The episode highlights vulnerabilities in supply chains fueled by the AI boom, with traders speculating on continued price gains.
This disruption could ripple through semiconductors and shipping sectors, potentially slowing AI progress. Experts stress the need for diversified sourcing to mitigate risks.