"Since the start of 2026, Tesla Inc., Apple Inc. and a dozen other major corporations have signaled that the shortage of DRAM, or dynamic random access memory - the fundamental building block of almost all technology - will constrain production. Cook warned it will compress iPhone margins. Micron Technology Inc. called the bottleneck "unprecedented." Musk got to the intractable nature o f the problem when he declared Tesla is going to have to build its own memory fabrication plant."
"The fundamental reason for the squeeze is the buildout of AI data centers. Companies like Alphabet Inc. and OpenAI are gobbling up an increasing share of memory chip production - by buying millions of Nvidia Corp. AI accelerators that come with huge allotments of memory - to run their chatbots and other applications. That's left consumer electronics producers fighting over a dwindling supply of chips from the likes of Samsung Electronics Co. and Micron."
"A growing procession of tech industry leaders including Elon Musk and Tim Cook are warning about a global crisis in the making: A shortage of memory chips is beginning to hammer profits, derail corporate plans and inflate price tags on everything from laptops and smartphones to automobiles and data centers - and the crunch is only going to get worse."
Memory chip shortages, particularly of DRAM, are emerging as a major global constraint on production and profits across consumer electronics, automotive, and data center industries. Rapid buildout of AI data centers has driven large buyers such as Alphabet and OpenAI to purchase millions of AI accelerators that require substantial memory, diverting supply from traditional manufacturers. Price spikes have accelerated, with one DRAM type rising 75% from December to January and retailers adjusting prices daily. Major firms report margin compression and production limits, and some companies, including Tesla, are contemplating building their own memory fabs to secure future supply.
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