AI's Memory Hunger Reshapes Chip Market, Driving Up Costs Globally

• A global shortage of memory chips, particularly DRAM and HBM, is impacting the tech supply chain due to AI demand.
• Senior executives from Apple, Google, Microsoft, Nvidia, and Amazon are making extended trips to Seoul to secure memory supplies from Samsung Electronics and SK hynix.
• Memory makers are reallocating production from conventional DRAM to higher-margin HBM for AI, leading to scarcity for other devices.
• Memory chip prices, including DRAM and NAND, surged by 40-50% in Q4 2025, with further increases expected.
• The shortage is driven by long-term investment choices and a pivot towards AI-centric components, not just logistical disruptions.

Why It Matters: AI's insatiable demand for memory chips is causing a global shortage, driving up costs and reshaping the tech industry.