One of the world’s largest memory manufacturers, Micron Technology, has issued a stark warning about the ongoing global chip shortage. The company describes the situation as “unprecedented,” driven by insatiable AI demand, and expects it to persist even beyond 2026.
Micron’s Executive Vice President of Operations, Manish Bhatia, stated that the production of high-bandwidth memory (HBM) for AI systems is consuming so much manufacturing capacity that it is causing severe shortages for other industries. This includes critical markets like smartphones and personal computers.
As a result, device manufacturers are reportedly queuing up to secure memory chip orders for the coming years. Automakers and the emerging humanoid robot sector are also adding to the soaring demand, intensifying the supply crunch.
The ripple effects are already being felt. Chinese smartphone makers, including Xiaomi and OPPO, are reportedly cutting their 2026 shipment forecasts due to rising memory costs. OPPO has reduced its projections by 20%. This aligns with analyst predictions of a potential decline in the broader smartphone market next year.
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Micron’s recent strategic shift underscores this new reality. The company recently announced the closure of its Crucial consumer brand to focus its entire output on supplying memory for the AI sector. This move, combined with its new $100 billion manufacturing site, highlights the industry’s pivot to meet AI-driven demand, even at the expense of traditional consumer markets.
Also read: Memory Chip Shortage to Persist Beyond 2026, Micron Technology Says
