Micron and Lenovo Forecast Long-Term Memory Chip Shortage

Memory chip manufacturers and hardware companies are bracing for a prolonged supply crisis driven by artificial intelligence demand. Micron Technology CEO Sanjay Mehrotra announced during the company's fiscal third-quarter 2026 earnings report that global memory chip shortages will persist beyond 2027. While supply may improve gradually in 2028, the company currently lacks a clear timeline for when production will catch up with demand.

This structural supply crisis has led to a new pricing landscape. Lenovo stated at the ISC 2026 conference that high DRAM and NAND memory prices are unlikely to return to pre-2025 levels and will instead become a new normal through 2030. Microsoft has already raised Xbox console prices in response to the surge and forecasts that memory costs could double again by the fall of 2027.

To capitalize on the shortage, Micron is exiting the consumer market to focus on its more profitable data center business. Micron Chief Business Officer Sumit Sadana suggested that aggressive pricing demands from major customers previously hindered the company's ability to invest in production capacity. Meanwhile, competitors Samsung Electronics and SK Hynix are reporting record profits and accelerating long-term expansion plans to address the imbalance.