- Prices of laptops and mobiles are increasing due to shortage of memory chips.
- AI boom and Iran war impacting chip production.
- Chip manufacturing companies will not be able to meet the increased demand till 2027.
- It may take time till 2027-28 for the situation to become normal.
Memory Shortage Crisis: Laptops and mobile phones are becoming expensive since last few months. Recently there was a report that the prices of 80 smartphone models sold in India have increased by 15 percent. The matter of concern is that there is no hope for customers to get relief soon. Actually, due to shortage of memory chips, their cost is increasing, which is affecting the customers. Now a recent report states that the shortage of memory chips does not seem to be resolved soon and this crisis may continue till next year.
How long will the Memory Shortage Crisis continue?
According to media reports, chip manufacturing companies cannot increase their capacity to meet the increasing demand for chips until at least 2027. Currently, Samsung, SK Hynix and Micron are the three largest chip manufacturing companies. The market share of these three is about 90 percent. Of these, Micron has started making chips only for AI data centers. The remaining two companies have made plans to increase production. Despite this, it will be able to meet only 60 percent of the demand. Due to this, chip shortage will continue in the market.
What is the reason behind Memory Shortage Crisis?
AI boom is being held responsible for the shortage of memory chips. In fact, companies making chips for mobiles and laptops etc. are now meeting the demand for AI data centres. AI companies are getting huge orders for them, due to which there is shortage of chips in the consumer market. Due to this, now smartphone companies have to pay more money to buy chips, the effect of which is being seen on the prices. Apart from this, the situation has also worsened due to Iran war and due to which chip production is likely to be further affected.
When can the situation become normal?
Samsung, the world’s largest maker of memory chips, will open a new fabrication plant this year, but full-scale production will not begin until next year. SK Hynix has also made a plan to increase production, under which the company will start a new plant. In this also work will start only next year. Apart from this, Micron is also preparing to start a new plant in 2027. Despite these efforts, the demand does not seem to be met. In such a situation, many experts believe that this memory chip crisis does not seem to go away till 2027-28.
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