Dell, HP US consumer electronics Manufacturers have also joined the ranks of those issuing warnings this week—anticipating the rise of artificial intelligence. The surge in demand for infrastructure construction may lead to a severe shortage of memory chips next year. Supply shortage.
Prior to this, downstream manufacturers such as Xiaomi had already warned of potential price increases, and companies like Lenovo had begun stockpiling memory chips to cope with rising costs. A forecast released earlier this month by Counterpoint Research indicated that, due to a shortage of key chips, memory prices are expected to rise by approximately 50% from current levels by the second quarter of 2026.
The shortage of memory chips will drive up manufacturing costs for a wide range of products, from mobile phones to medical devices and automobiles—these chips are used in almost all modern electronic devices that store data, and the AI boom is undoubtedly one of the key drivers of the memory chip shortage.
Memory chips are divided into two categories: processing-assisted and information storage. Currently, manufacturers are shifting more production capacity to meet the high-bandwidth memory requirements of AI systems. Demand for (HBM) products has exacerbated the shortage of ordinary memory chips.
Dell's COO stated bluntly: "I've never seen costs rise so quickly."
Dell Chief Operating Officer Jeff Clarke said on Tuesday's analyst call that the company has never seen costs rise so quickly. He stated that Dell is feeling the tightening of DRAM supply, while also facing shortages of hard drives and NAND flash memory. "The cost base for all products is rising."
Dell is currently adjusting its product configurations and portfolio, but Clarke acknowledged that the impact will eventually reach consumers. He stated that the company will consider all options, including adjusting the pricing of some devices.
HP CEO Enrique Lores also stated that the second half of 2026 will present particularly severe challenges, and product prices will need to be increased if necessary.
Lores noted, "For the second half of the year, we are adopting a prudent guidance strategy while implementing proactive measures, such as increasing the number of memory suppliers and reducing the memory configuration of our products." The company estimates that memory costs account for 15% to 18% of the total cost of a typical PC.
Memory chip manufacturers are struggling to keep up with supply.
Currently, the fierce competition in AI infrastructure development has not only driven up the demand for large data centers. The energy bills in the surrounding areas have led to a significant increase in the valuation of the world's top memory manufacturers.
With inventory becoming increasingly scarce and supply challenges emerging, Samsung Electronics, SK Hynix, and Micron Technology are facing challenges. SK Hynix's stock price has risen sharply in recent months. Last month, SK Hynix said it had sold out its entire memory chip product line for next year, while Micron expects supply shortages to continue until 2026.
Kioxia Holdings, a Japanese company focused on producing NAND flash memory, has seen its stock price surge several times since its IPO last December—also driven by tight supply.
"All memory-related sectors—whether advanced or traditional—are facing strong demand, while supply is falling short." - CLSA Korea Securities Research director Sanjeev Rana said after Samsung released its earnings report last month, "The current upward trend in DRAM and NAND prices is likely to continue for several quarters."
Businesses of logic chip suppliers may also be affected—these data-processing chips are crucial for building artificial intelligence systems. Customers may suspend orders if they cannot obtain sufficient memory.
SMIC Earlier this month, warnings were issued that memory shortages could impact the production of automobiles and consumer electronics as early as 2026, noting that major chipmakers are prioritizing collaborations with key AI accelerator companies like Nvidia. Memory shortages can cause bottlenecks during business operations.
Chey Tae-won, chairman of SK Group, the parent company of SK Hynix, also warned of the risk of supply bottlenecks earlier this month. In his keynote speech at the SK AI Summit in Seoul, he stated, "We have entered an era of supply bottlenecks. Numerous companies are making memory chip supply requests to us, and we are working diligently to find ways to meet all the demands."
PC and mobile phone manufacturers are scrambling to devise countermeasures.
Faced with a sharp rise in memory costs, many downstream PC and mobile phone manufacturers are currently considering countermeasures.
Xiaomi disclosed in its Q2 financial report that its smartphone gross margin dropped to 11.5% from 12.1% in the same period last year. President Lu Weibing explicitly mentioned in the conference call that "rising prices of components such as memory chips" was one of the main reasons. Lu Weibing admitted that the company might partially absorb the pressure of rising memory costs through product price increases, but the fundamental solution lies in continuously optimizing the product structure and steadfastly promoting high-end products.
Lenovo emphasized its economies of scale, stating that it expects to seize more market share through its supply chain advantages as competitors struggle. However, Lenovo's CFO, Zheng Xiaoming, echoed Dell's view, describing the soaring costs as "unprecedented." In a media interview, Zheng revealed that its memory inventory levels were about 50% higher than in previous years.
ASUS is also accelerating its stockpiling – both ASUS and Lenovo plan to maintain price stability during the holiday season and reassess the market situation after the New Year.
apple The company is perhaps one of the most optimistic among downstream enterprises. While Apple CFO Kevan Parekh acknowledged in an analyst call that memory prices face "slight upward pressure" and that "some new products do indeed have a slightly higher cost structure," he emphasized that Apple is effectively controlling costs.
Similar to Lenovo, as a "primary customer" of many manufacturers in the electronics supply chain, Apple was able to secure favorable terms for continued supply.
Huaxi Securities It is believed that the global memory chip market is rapidly entering a "supercycle," with multiple manufacturers raising prices, and the price surge may intensify further. Furthermore, external pressure is transforming into internal innovation momentum, potentially propelling China towards self-reliance and industrial upgrading in key technology areas.
(Article source: CLS)
