Micron Warns Global Memory Shortage Will Continue Past 2026
Micron Technology, one of the world’s leading manufacturers of DRAM and NAND flash memory, said on Thursday that the ongoing shortage of memory chips is expected to persist well beyond 2026. The company’s forecast indicates that supply will remain substantially lower than demand for the foreseeable future, extending the pressure on a market already strained by rapid growth in data-intensive applications.
The outlook reflects several converging trends. Demand for memory has surged in recent years due to the expansion of cloud computing, artificial intelligence workloads, and the rollout of 5G networks, all of which require large volumes of high‑performance storage. At the same time, semiconductor fabrication capacity has struggled to keep pace, hindered by limited wafer production lines, supply-chain disruptions, and the substantial capital investment required to build new fabs.
Industry analysts note that while Micron’s projection is cautious, it aligns with broader expectations across the sector. "The combination of robust demand growth and constrained supply is unlikely to reverse in the short term," a senior analyst at a market research firm said. Government officials in several regions have also highlighted the strategic importance of semiconductor resilience, prompting discussions about incentives for expanding domestic manufacturing capabilities.
Micron’s statement comes as the company plans to increase its capital expenditures over the next three years, aiming to bring new memory products to market and to improve yields at existing facilities. However, the firm acknowledged that the timeline for bringing additional capacity online is lengthy, often requiring two to three years from the start of construction to full production.
The extended shortage may have ripple effects across multiple industries. Manufacturers of smartphones, PCs, and automotive electronics could face higher component costs and potential delays in product rollouts. Meanwhile, consumers might see price increases for devices that rely heavily on memory, such as laptops and gaming consoles.
Looking ahead, Micron emphasized that collaboration among chipmakers, equipment suppliers, and policymakers will be essential to alleviate the imbalance. While the company remains optimistic about its long‑term growth prospects, it cautioned that the memory market will likely remain tight for several more years, underscoring the need for strategic planning across the technology ecosystem.
