The global memory chip shortage is deepening in early 2026, as relentless AI-driven demand strains supply chains and begins to reshape market winners and losers.

In a research note released Friday, Oxford Economics warned that the ongoing shortage of memory chips is becoming increasingly damaging for global supply chains, particularly for manufacturers that rely on traditional DRAM and NAND chips, such as electronics producers, electrical machinery makers and automakers.

By contrast, memory chipmakers are seeing order books fully booked years in advance, with margins soaring.

The culprit, according to the firm, is insatiable AI-driven demand for advanced, high-margin memory chips, demand that is crowding out production of conventional components used in PCs, smartphones and consumer electronics.

AI Frenzy Ignites Memory Chip Shortage

"We expect the current supply–demand imbalance to persist over the next few years, as long as the AI investment boom continues," said Makoto Tsuchiya, senior economist at Oxford Economics.

"Firms are shifting production capacity towards higher-margin AI chips, leaving less capacity for traditional memory chips," he added.

As chipmakers race to meet record demand for high-bandwidth memory (HBM) chips, a key input for AI data centers, production ...