News & Reviews:   demand

A new report highlights how the global memory chip crunch is no longer a short-cycle but a structural shift, with supply expected to lag demand for years as artificial intelligence workloads take priority across the semiconductor industry. Memory manufacturers are projected to meet only about 60% of global demand by 2027, signalling a prolonged shortage with no immediate relief in sight.

Shares of Qualcomm fell sharply this week after the company issued weaker financial guidance for the current quarter, warning that a global memory chip shortage is weighing on the smartphone market and constraining demand for its mobile chips. The outlook disappointed Wall Street following Qualcomm’s fiscal first-quarter earnings release, triggering a sell-off in after-hours trading as investors absorbed the supply chain challenges.

Industry research firm Counterpoint Research has revised its outlook for the global smartphone market, now projecting a slight contraction in shipments in 2026. The adjustment is largely due to a sharp rise in memory chip prices, especially for DRAM (RAM) used in smartphones, as supply tightens against booming demand from artificial intelligence (AI) data centres and other high-end computing sectors.

It seems that the iPhone 14 series is not as popular as Apple has hoped for it to be, whereby it is allegedly lower than the tech giant’s anticipated demand projection. So much so, that Apple has now reportedly abandoned its plans to increase production levels of its new flagship smartphone series.