Micron Technology, a key supplier to Nvidia, reported that the scarcity of memory chips intensified during the last quarter. This was mainly attributed to the soaring demand for high - end semiconductors, which is being propelled by the rapid expansion of artificial intelligence infrastructure. The memory shortage crisis is anticipated to extend well beyond this year.

The high - bandwidth memory required for AI accelerators has taken up a substantial share of the production capacity. As a result, chip supplies in traditional sectors have become extremely tight. Manufacturers of personal computers and smartphones have already started securing orders that extend beyond 2026.

The burgeoning development in areas such as autonomous vehicles and humanoid robots is set to further escalate the demand for chips. Due to escalating costs, major Chinese smartphone manufacturers, including Xiaomi, OPPO, and Transsion, have revised down their shipment targets for 2026.

In 2025, the stock prices of the world's top three memory chip giants witnessed a significant surge. Among them, SK Hynix's production capacity for 2026 is fully booked. Similarly, Micron's orders for AI memory chips this year are also completely scheduled.

In a bid to guarantee supply to its strategic customers, Micron has made the decision to discontinue its Crucial consumer - grade memory business. At the same time, it has stepped up its capacity expansion initiatives. This includes acquiring sites in Taiwan, China, and formulating plans to construct factories at multiple locations across the United States. Its expansion endeavors are benefiting from subsidies and tax credit policies under the CHIPS and Science Act.