Global memory shortage may last until 2030 as AI demand takes priority: report
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A global shortage of memory chips could persist until the end of the decade as suppliers prioritise production for artificial intelligence data centres over consumer devices, according to industry reports.
SK Hynix Group Chairman Chey Tae-won told Reuters that the current supply crunch may not ease before 2030, citing surging demand for high-bandwidth memory used in AI infrastructure.
SK Hynix, which holds about 32 percent of the global DRAM market and leads the high-bandwidth memory segment, is reportedly planning a new fabrication plant focused on AI-related memory rather than consumer products. The company is struggling to meet demand from AI players, with Chey saying it could take four to five years just to scale up raw materials and production capacity.
The shift toward AI-focused memory could deepen shortages in the consumer tech market, with estimates suggesting a potential shortfall of more than 20 percent for retail components.
A report by Nikkei Asia offered a slightly more optimistic outlook, suggesting supply pressures could begin easing by 2027 as major players expand production. Industry leaders, including Samsung Electronics, SK Hynix, and Micron Technology, are investing in new fabrication facilities, though many of these are also geared toward AI memory and advanced chips.
Samsung is expected to add another plant at its Pyeongtaek campus, but it may not be fully operational until late 2027 and could focus partly on logic chips. SK Hynix and Micron are also expanding high-bandwidth memory output, with new production timelines extending to 2027.
According to Counterpoint Research, resolving the shortage would require annual production growth of about 12 percent, while current plans indicate an increase of only 7.5 percent.
The shortage has already driven up costs across the consumer tech sector. Prices of key components such as memory and storage have risen sharply, affecting devices including smartphones, laptops, and gaming consoles. Sony has raised prices for the PlayStation 5 and PlayStation 5 Pro, while other manufacturers are also expected to follow.
Reports suggest companies like Apple, along with Chinese brands such as Vivo and iQOO, may face higher component costs, potentially leading to further price increases for upcoming devices.