Chipmakers and analysts are warning of a memory chip shortage that could hit the consumer electronics and automotive industries next year, as companies prioritize massive demand from the artificial intelligence boom.
In an earnings call on Friday, the CEO of Semiconductor Manufacturing International Corp, China’s largest contract chipmaker, reportedly said that fears of a memory chip shortage were prompting its customers to hold back orders for other types of chips used in their products.
“People don’t dare place too many orders for the first quarter next year,” said Zhao Haijun, SMIC’s co-CEO, during an earnings call. “Because no one knows how many memory (chips) will actually be available — how many phones, cars, or other products it can support.”
Analysts say these supply constraint concerns come as chip manufacturers focus on advanced memory chips used in artificial intelligence computing, with less focus on production needed for consumer products.
“The AI build-out is absolutely eating up a lot of the available chip supply, and 2026 looks to be far bigger than this year in terms of overall demand,” Dan Nystedt, vice president of research at TriOrient, told CNBC.
