Memory chip shortage to last through 2027: Synopsys CEO
LEDs are lit on a server rack in the data center.
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Price increases and memory shortages will likely continue through 2027, one of the semiconductor industry’s leading CEOs told CNBC, adding that the crisis caused by the boom in artificial intelligence infrastructure may last longer than expected.
Memory chips are a key component of consumer electronics devices such as smartphones and laptops. They have also become a critical part of AI data centers and the servers installed in these facilities. There is a significant demand for high-bandwidth memory in particular.
As tens of billions of dollars continue to be spent on data center infrastructure, demand for memory chips has skyrocketed, leading to an unprecedented price surge for semiconductors that is expected to continue this year.
Sassine Ghazi, CEO summaryCNBC, a major semiconductor design tool company, said in an interview last week that the chip “collapse” will continue through 2026 and 2027.
Most of the memory from the top players “goes directly into the AI infrastructure, but many other products need memory, so other markets are starving today because there’s no capacity left for them,” Ghazi said.
Samsung, SK Hynix and Micron They are the largest memory companies in the world.
These companies aimed to expand production, but it took a “minimum” two years to come online, which is one of the reasons why the crisis lasted so long, Ghazi said.
Sassine Ghazi, CEO of semiconductor design software company Synopsys, explains the company’s plans to have artificial intelligence take over parts of the design of computer chips during the company’s annual user conference on March 19, 2025, in Santa Clara, California.
Stephen Nellis | Reuters
Memory prices have historically traded in cycles of undersupply or oversupply that determine the price of components. However, some analysts have called the current trend a “super cycle.”
“Now is a golden time for memory companies,” Ghazi said.
Winston Cheng, chief financial officer of Lenovo, the world’s largest computer manufacturer, said in an interview last week that “we will see memory prices increase,” stating that demand is high and supply is insufficient.
Price stands out
Increases in memory prices, consumer electronics companies Take price increases into consideration.
Chinese electronics giant XiaomiInc., one of the world’s largest smartphone companies, announced last year that it expected price increases in mobile phones in 2026. But Synopsys’ Ghazi said price increases “are already happening.”
Lenovo’s Cheng said he was “very confident we can cover the cost of the cycle” because memory chips are in high demand.
Lenovo has a global “diversified” supply chain with 30 manufacturing facilities around the world, which could help mitigate some of the risks associated with memory shortages, Cheng said.
However, he noted that the consumer device segment has also “suffered a little bit in terms of price demand.” He added that PC and laptop users are still upgrading to Windows 11. MicrosoftOperating system released in 2021.
“I think the renewal cycle is very real,” Cheng said. However, price increases will first “start to reach the lower end” of the electronics market.
