Memory Chip Shortage to Persist Beyond 2026, Micron Technology Says
In Focus
- Micron says demand for high-end chips is causing a memory chip shortage
- Production of humanoid robots could worsen the AI memory crunch
- Tech companies have already lowered shipment targets for 2026
Micron Technology says the memory chip shortage will continue beyond 2026. According to Yahoo Finance, Micron’s memory chip shortage projections are based on rising demand for high-end chips needed to support AI infrastructure.
Current Memory Shortage is Largely Unprecedented
Micron Technology’s VP for Operations, Manish Bhatia, termed the memory chip shortage being experienced in the industry as “unprecedented.”
He added that the high-bandwidth memory needed to make AI chips is “consuming so much of the available capacity across the industry that it’s leaving a tremendous shortage for the conventional side of the industry, for phones or PCs.”
He also said that smartphone and PC manufacturers are waiting for memory chips as they seek to secure supplies for the coming year. News about Micron’s memory shortage shortly after Counterpoint Research projected a 6.9% increase in smartphone prices in 2026 due to the AI chip shortage.
Production of humanoid robots and autonomous vehicles is expected to further increase demand for these components. This will likely worsen the Micron AI memory crunch in the coming years.
Impact of Rising Memory Costs
As the cost of memory chips rises, tech companies are beginning to lower their 2026 shipment targets. Chinese smartphone manufacturers like Oppo and Xiaomi have already reduced their targets. Oppo, for example, has lowered its projects by 20%.
PC manufacturers like Dell Technologies have already said that the ongoing Micron memory chip supply challenges would affect its production. Smartphone shipments are expected to decline by 2.1% this year as the chip shortage squeezes production.
Demand for memory chips caused stocks of the three leading makers, Micron, Samsung Electronics, and SK Hynix, to soar in 2025. Last month, Micron stock surged 10% after the company forecasted quarterly revenue twice as high as analyst predictions. Already, SK Hynix has sold out its chip slate this year. Micron also said its AI memory chips have been booked fully this year,
Last month, Micron announced plans to retire its Crucial-branded consumer memory unit to enable it prioritize supplies to strategic customers like NVIDIA. AI-driven demand is pushing Micron to expand production in the U.S. and Asia.
Micron’s U.S. DRAM Production
Micron Technology is focused on boosting DRAM fabs production in the U.S. last week, the memory chip maker commenced construction of a $100 billion production site in New York’s Syracuse environs.
The production site is expected to host four DRAM fabs, with production of initial wafers scheduled for 2030. DRAM powers advanced processors such as those developed by NVIDIA and Intel. It supports computation and anchors high-bandwidth memory that allows AI accelerators to operate efficiently.
The American chipmaker is setting up two fabs’ with capacities similar to the facility in Boise, Idaho. The first fab is set to commence production in 2027, while the second one is in the planning phase. Micron Technology is also expanding and improving its Virginia production facility.
