Memory shortages are only partly due to AI, says Micron - Techzine Global

Micron CEO Sanjay Mehrotra stated that global memory chip shortages are not solely driven by the explosive growth of artificial intelligence (AI). He emphasized that years of price pressure from major... Read original →

Micron’s CEO exposed the core issue: memory shortages stem not just from AI demand but from years of suppressed pricing that starved capacity investment. Technologically, HBM’s co-evolution with 3nm logic chips forces DRAM into EUV and hybrid bonding, raising barriers across the advanced packaging stack. Compliance-wise, U.S. CHIPS Act subsidies come with geopolitical strings that extend supply chain validation timelines and inflate operational costs. Facing Samsung and SK Hynix’s aggressive HBM4 roadmaps, Micron’s $20B commitment is a defensive play to secure market share. Over the next 12–24 months, consumer price hikes are merely the tip; automotive and edge AI devices will face severe BOM inflation. With new fabs requiring at least 18 months to ramp, scarcity will persist as a structural reality.