Beijing: The rapid growth of artificial intelligence is creating a new global supply chain crisis, with companies around the world struggling to secure enough memory chips for devices and data centers. The shortage is affecting everything from smartphones to high performance AI servers, raising concerns among technology firms, economists and government officials.
According to industry reports, demand for memory chips such as DRAM, flash storage and high bandwidth memory has surged sharply in recent months as companies race to expand AI infrastructure. Major firms including Microsoft, Google and ByteDance are competing to secure supplies from leading chipmakers like Samsung Electronics, SK Hynix and Micron Technology.
Prices of some memory chips have more than doubled since early 2025. Analysts say inventories that normally last several months have now dropped to just a few weeks. The tight supply is forcing smartphone companies such as Xiaomi and Realme to consider raising product prices, while some retailers in Japan and other Asian markets have already started limiting customer purchases.
Experts warn the shortage could delay expansion of data centers needed to power new AI applications. Economists also say the supply crunch may add pressure to global inflation at a time when many countries are still trying to stabilise consumer prices.
Chipmakers are planning to increase production, but new manufacturing plants take years to build and become fully operational. Some analysts believe the shortage could continue until late 2027.
The crisis has also increased discussions about diversifying semiconductor production and reducing dependency on a few companies and regions. However, efforts to expand manufacturing face challenges such as high investment costs, export controls and technological barriers.
Industry experts say the situation shows how quickly AI development is transforming global supply chains.
While AI promises major gains in productivity, the current shortage highlights weaknesses in the technology manufacturing ecosystem.
For now, companies and consumers may have to prepare for higher prices and possible delays in new product launches as the world adjusts to a new era of demand driven by artificial intelligence.