Micron VP: AI Chip Shortage to Persist Beyond 2026

The global semiconductor industry faces a prolonged shortage of memory chips, driven by the explosive growth of artificial intelligence. According to Manish Bhatia, vice president at Micron Technology, the insatiable demand for memory capacity will keep supply constrained for years to come.

While the industry has been grappling with supply chain disruptions for some time, the specific demand from AI data centers has created a unique challenge. Bhatia's assessment suggests that the shortage will not be resolved in the near term, affecting the broader technology landscape.

Artificial intelligence is the primary driver behind the current memory deficit. Manish Bhatia explicitly stated that "ИИ поглощает большую часть доступных мощностей"—AI is absorbing the majority of available capacity.

This demand is not limited to a single type of memory but spans across the spectrum of chips required to train and run large language models and other AI applications. The sheer scale of computational power needed for AI is outpacing the industry's ability to manufacture sufficient memory.

The implications are far-reaching, impacting everything from consumer electronics to enterprise servers. As AI integration deepens across sectors, the competition for memory resources will only intensify.

The shortage is not a temporary blip. Bhatia's warning indicates that the deficit will persist well beyond 2026. This timeline suggests that the industry is in for a multi-year period of tight supply and elevated prices.

For manufacturers and consumers alike, this means continued challenges in securing hardware. The memory shortage is a critical bottleneck in the production of everything from graphics cards to servers.

The shortage is expected to continue for years.

This extended timeline forces companies to rethink their supply chain strategies and inventory management. Reliance on a stable supply of memory chips is no longer guaranteed.

In response to the growing demand, Micron is taking significant steps to expand its manufacturing footprint. The company has initiated the construction of new production facilities within the United States.

However, these new fabs are not a quick fix. The construction phase is complex, and the timeline for operational production is long. According to the company's plans, the first chips from these new US facilities are not expected to roll off the production line until 2030.

This four-year gap between the start of construction and the beginning of production highlights the immense challenge of scaling up semiconductor manufacturing. It also underscores the urgency of the current shortage.

The memory shortage affects the entire technology ecosystem. From cloud computing giants to consumer electronics manufacturers, every sector relies on a steady supply of memory to function.

The delay in new capacity coming online means that the industry must navigate a prolonged period of scarcity. This will likely influence product pricing, availability, and the pace of innovation.

Key areas affected include:

• AI data center expansion and upgrades
• Production of high-performance computing systems
• Availability of consumer devices like smartphones and laptops
• Development of next-generation automotive technology

As the demand for AI continues to grow, the pressure on memory suppliers will remain intense.

The semiconductor industry is at a critical juncture. The AI revolution is driving unprecedented demand for memory, and the supply side is struggling to keep up.

With Micron's new US facilities not expected to contribute to supply until 2030, the shortage is set to be a defining feature of the technology landscape for the foreseeable future. Companies and consumers must prepare for a reality where memory is a scarce and valuable resource.

The path forward requires patience, strategic planning, and a focus on efficiency. The industry's ability to innovate will be tested as it works to bridge the gap between demand and supply.