AI spending surge could trigger unprecedented memory chip shortage, KB Securities warns - Korea JoongAng Daily

KB Securities warns that the rapid growth of artificial intelligence technology and related investments could trigger an unprecedented shortage in the memory chip market. The firm notes that as AI app... Read original →

The AI boom is reshaping the semiconductor supply chain at an unprecedented pace, with memory chip demand surging and triggering global supply chain alerts. Technologically, the bottleneck at 3nm and below nodes, coupled with AI’s demand for high-bandwidth, low-latency memory, is creating a cascade of supply constraints. This extends beyond data centers to autonomous vehicles and edge computing, intensifying multi-point supply-demand imbalances. From a compliance standpoint, geopolitical risks—especially in key manufacturing hubs like Taiwan and Hong Kong—pose significant operational risks, with potential disruptions directly increasing corporate costs. Major players are unlikely to adjust capacity quickly, leading to price volatility and supply chain restructuring. In competitive terms, leading firms may accelerate vertical integration and local sourcing to mitigate supply risks. Over the next 12 to 24 months, sustained AI growth could lead to prolonged memory chip shortages, forcing the industry to reassess long-term capacity planning and investment strategies.