Memory Shortage Fears Spread, Raising Alarm At Qualcomm And Arm

The AI boom is causing a "great memory crunch," primarily due to data centers consuming high-bandwidth memory (HBM). This shortage will impact consumer electronics, including smartphones and PCs, slowing growth in the industry. Qualcomm and Arm Holdings have confirmed the HBM shortage will affect smartphone production. Qualcomm's CEO warned of handset production cuts, particularly in China. Memory shortages are becoming significant due to AI infrastructure demand, impacting conventional electronics. Micron Technology predicts the memory chip shortage will extend beyond this year, increasing prices. Chinese smartphone makers are already reducing shipment targets for 2026 due to higher memory costs. Nintendo's shares have been affected by rising HBM costs. Intel's CEO warns the shortages could persist for years. PC shipment forecasts for 2026-2028 have been lowered due to the memory crunch. The price of consumer RAM has seen a dramatic increase. Data centers are expected to consume 70% of high-end memory chip production this year.