A severe global shortage of memory chips is disrupting both the AI sector and consumer electronics, driving up prices and forcing major tech companies to compete for limited supplies.

Axar.az, citing Reuters, reports that demand for high-bandwidth memory used in AI data centers, alongside flash and DRAM used in everyday electronics, has surged faster than manufacturers can keep up.

Prices in some memory segments have more than doubled since February, with Japanese retailers rationing hard drives and Chinese smartphone makers warning of price increases.

Tech giants, including Microsoft, Google, and ByteDance, are scrambling to secure long-term supply contracts from Micron, Samsung, and SK Hynix.

Executives warn that the shortage, expected to last until late 2027, could slow AI-driven productivity gains, delay major data-center projects, and add inflationary pressure globally.