Global memory chip shortage deepens in early 2026 due to AI-driven demand, affecting supply chains. Memory chipmakers enjoy fully booked order books and soaring margins amidst AI data explosion. AI demand for high-margin chips is crowding out production of conventional components, leading to long-term supply-demand imbalance. Chipmakers shift focus to high-bandwidth memory chips for AI data centers.

The global memory chip shortage is worsening in early 2026 due to robust demand driven by artificial intelligence. Oxford Economics revealed that the shortage is significantly impacting global supply chains, especially electronics, electrical machinery, and automakers relying on traditional DRAM and NAND chips. On the other hand, memory chip manufacturers are benefiting from fully booked order books and soaring margins. The insatiable AI-driven demand for advanced memory chips is outpacing the production of conventional components used in PCs, smartphones, and consumer electronics. Makoto Tsuchiya, a senior economist at Oxford Economics, anticipates the supply-demand imbalance to persist in the next few years as long as the AI boom continues. Manufacturers are redirecting production capacity towards higher-margin AI chips, reducing capacity for traditional memory chips. Chipmakers are striving to meet the heightened demand for high-bandwidth memory chips crucial for AI data centers.