The global shortage of key tech components, particularly RAM, is expected to continue well into 2028, according to Micron, a leading semiconductor manufacturer. The primary driver behind this extended shortage isn’t a simple supply chain issue – it’s the overwhelming demand from the rapidly expanding artificial intelligence (AI) sector.
AI Prioritization: A Shift in Production Focus
Micron, one of the few U.S.-based memory producers, has stated that current production lines are overwhelmingly allocated to fulfilling orders for AI data centers. These contracts are more profitable than supplying components for consumer electronics like PCs and gaming consoles. This means that manufacturers like Framework are forced to raise prices, and companies like Sony may delay product launches (such as the next PlayStation) due to component scarcity.
“We broke ground in Idaho in our ID1 facility three years ago… But you’re not really gonna see real output… until 2028.” – Christopher Moore, Micron VP of Marketing
New Facilities: A Long-Term Solution
Micron is investing in new production facilities, notably the ID1 plant in Idaho, to alleviate the shortage. However, these facilities take years to become fully operational. The company anticipates significant output only by 2028, factoring in construction, qualification, and customer acceptance testing.
Implications for Consumers and Industry
The prolonged shortage will likely keep prices of tech devices elevated for the foreseeable future. Consumers planning upgrades, particularly high-end gaming PCs, may need to wait several years for component availability to improve and prices to stabilize. The situation highlights the growing influence of AI on the tech industry, where its demands take precedence over other sectors.
The AI arms race is reshaping the semiconductor landscape, and until new capacity comes online, consumers and manufacturers will continue to feel the pinch.
