Micron warns: AI-induced storage chip shortage is "unprecedented" and will continue beyond 2026.

Micron Technology points out that the surging demand for high-end semiconductors driven by artificial intelligence infrastructure is causing an "unprecedented" shortage of memory chips. The company warns that this supply crunch has intensified over past quarters and will continue beyond 2026. Manish Bhatia, Micron's Executive Vice President of Operations, said that high-bandwidth memory (HBM) required by AI accelerators "is consuming the vast majority of available industry capacity, resulting in severe shortages in traditional sectors like mobile phones and personal computers." The chip shortage has triggered a chain reaction. According to Jiemian News, rising memory costs have led major smartphone makers such as Xiaomi, Oppo, and Transsion Holdings to lower their 2026 shipment targets, with Oppo predicting a drop as high as 20%. Industry organization Counterpoint Research previously estimated that due to rising storage chip costs and squeezed capacity, global smartphone shipments in 2026 may decline by 2.1%. The impact is continuing to expand, with PC manufacturers like Dell already warning of potential disruptions from the shortages. Meanwhile, demand for memory chips in consumer electronics, autonomous driving, and humanoid robots continues to climb, and several manufacturers have begun competing for capacity supply beyond 2026. AI Demand Reshaping the Supply Landscape The share prices of the three global memory chip giants—Micron, SK Hynix, and Samsung Electronics—rose sharply in 2025 due to a surge in AI demand. SK Hynix revealed that its chip capacity for 2026 has already been sold out; Micron likewise announced that all its high-end memory products for AI have been fully booked for the year. Over the past year, Micron’s stock price increased by over 231.6%. To prioritize supply for strategic customers like NVIDIA, Micron announced in December last year that it would end its popular consumer memory brand Crucial. As the core building block of high-bandwidth memory (HBM), DRAM provides a crucial computing environment for advanced processors from companies like NVIDIA and Intel, and is an important foundation for ensuring efficient operation of AI accelerators. Accelerating Capacity Expansion The massive demand for memory chips from the AI industry is accelerating Micron's capacity expansion in the U.S. and Asia. On Saturday, Micron announced plans to spend $1.8 billion to acquire the site of an existing factory in Taiwan, a key production base for the Boise, Idaho-based chip maker. This move will significantly shorten the construction cycle of new factories. The company expects to achieve large-scale DRAM wafer output in the second half of 2027. In an interview on Friday, Manish Bhatia, Micron’s Executive Vice President of Operations, stated: "Our sites in Asia will continue to evolve towards next-generation technologies, while the additional wafer capacity will be mainly concentrated in the United States." Currently, Micron is advancing several large-scale factory projects: Its $100 billion project near Syracuse, New York, will build four DRAM wafer fabs, each about the size of ten football fields, with the first wafers expected to roll out in 2030. At the same time, the company is expanding two fabs next to its existing R&D facility in Boise; the first Idaho plant is expected to begin production in 2027, and the second is already being planned. In addition, existing manufacturing facilities in Virginia are being modernized and upgraded for higher capacity. These investments are an important part of Micron’s commitment to move 40% of DRAM manufacturing to the U.S., a goal supported by the $6.2 billion CHIPS Act funding received in 2024, along with a 35% tax credit during construction. Risk Warning and Disclaimer The market involves risks; investment requires caution. This article does not constitute personal investment advice, nor does it take into account an individual user's specific investment objectives, financial situation, or needs. Users should consider whether any opinions, views, or conclusions in this article suit their particular circumstances. Investments made accordingly are at your own risk.