Chipmakers say AI boom may tighten chip supplies

Two leading global chip manufacturers cautioned today that computer and smartphone companies are positioned to experience the most significant impact from an intensifying shortage of DRAM chips, according to Reuters. This is due to manufacturers prioritizing the production of more profitable chips needed for artificial intelligence infrastructure.

The warnings from Samsung Electronics and SK Hynix, which collectively control two-thirds of the DRAM market and supply companies such as Apple, highlight increasing margin pressures on consumer electronics makers and potential disruptions to supply chains.

During a post-earnings call with analysts, Park Joon Deok, head of DRAM marketing at SK Hynix, stated, “PC and mobile customers are having difficulties securing memory supplies, as they are being directly and indirectly affected by supply constraints and strong demand for server-related products.”

The push to develop AI infrastructure has led chipmakers to shift manufacturing capacity toward high-bandwidth memory for AI servers, reducing the supply of conventional DRAM. Following aggressive expansion after the 2017 supercycle, chipmakers have adopted a more conservative approach to adding new production lines in recent years, a factor contributing to the current shortage. Samsung indicated that such expansion would continue to be limited in 2026 and 2027.

With the shortage expected to continue, some manufacturers have begun modifying their products in response to the constrained supply and rising prices. SK Hynix noted in its earnings call, “Due to a recent surge in memory chip prices, PC and mobile customers are adjusting purchase volumes.” The company added that some customers are adopting more conservative shipment plans or considering specification adjustments for price-sensitive products.

Research firms IDC and Counterpoint now both anticipate global smartphone sales will contract by at least 2% this year, revising earlier growth forecasts. IDC estimates the PC market will shrink by at least 4.9% in 2026, following an 8.1% growth rate the previous year.