AI Demand Drives Global Memory Chip Shortage and Price Spikes
Major memory chip makers are redirecting production toward AI-focused high-bandwidth memory, causing conventional DRAM and NAND prices to surge for hardware manufacturers.
A severe global memory chip shortage is driving significant price increases and shifting profit margins across the technology sector. Micron Technology, SK Hynix, and Samsung Electronics, which collectively control over 95% of global DRAM production, have redirected wafer capacity away from standard memory chips toward high-bandwidth memory (HBM) to serve AI data centers.
This strategic shift caused conventional DRAM contract prices to jump 90% to 95% in the first quarter of 2026, while NAND flash memory prices rose 55% to 60%. While memory makers like Sandisk are seeing gross margins reach 78.4%, hardware companies are facing severe cost pressures. Apple expects DRAM costs for its next flagship iPhone to roughly triple, and Super Micro Computer has reported volatile gross margins due to the high cost of memory for AI servers.
Industry capacity remains constrained, with SK Hynix announcing that its 2026 memory capacity is essentially sold out. New chip fabrication capacity is not expected to provide meaningful relief until late 2027 or beyond.
