The ongoing development of AI infrastructure is projected to exacerbate the memory chip shortage through 2026 and 2027, as chip manufacturers find it challenging to meet the surging demand, according to Synopsys CEO Sassine Ghazi in an interview with CNBC.
Ghazi, who leads the semiconductor design tool company, indicated that the supply crunch is anticipated to persist since scaling up chip production to match demand will require a minimum of two years.
Currently, the majority of the chips available are focused on supporting AI infrastructure. “However, numerous other products also require memory, leaving those markets in shortage as there’s no remaining capacity for them,” Ghazi remarked. Memory chips are essential in almost all contemporary electronic devices for data storage.
“Right now is an excellent period for memory companies,” Ghazi noted. The demand is continuing to enhance the revenues of the three largest memory chip producers: Samsung, SK Hynix, and Micron.
Some analysts characterize the surge in prices as a “super cycle.”
The extraordinary shortage has also led to increased prices for smartphones, personal computers, and gaming consoles.
Xiaomi, a major Chinese tech company and one of the largest smartphone manufacturers globally, stated last year that it anticipates phone prices will rise in 2026.
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