The computer industry is bracing for a prolonged memory chip shortage, with Intel CEO Lip-Bu Tan warning that the crunch is likely to persist for at least two years. Speaking at a Cisco Systems conference, Tan indicated that key players in the memory sector foresee “no relief until 2028.” The shortage is attributed to the rapid expansion of artificial intelligence infrastructure, which has significantly increased demand for memory chips.
This surge in AI-related demand has strained the supply available for traditional computers and smartphones, leading to shortages and subsequent price increases. The situation is expected to be further intensified by Nvidia, the leading provider of AI processors. Tan noted that Nvidia’s new Rubin platform and next-generation products will “suck up a lot of memory”, placing additional pressure on the already constrained supply chain.
Intel is the largest maker of processors for personal computers, products that rely heavily on memory for data storage and management. The leading memory manufacturers are Samsung Electronics, SK Hynix, and Micron Technology.
The ongoing shortage raises concerns about potential impacts on consumer demand, as rising prices may dampen appetite for computers and smartphones. The industry will be closely watching developments in both the AI and memory sectors to gauge the full extent and duration of the supply crunch.
