When it comes to microchips, global supply chains are quickly splitting into "haves" and "have-nots.” Consumer electronics manufacturers are being starved of essential components, as chipmakers aggressively shift capacity toward higher-profit products. At the same time, tech giants including Amazon and Microsoft are actively stockpiling advanced memory chips for their own AI ambitions, which further limits supplies available for things like smartphones and PCs. The result is an immediate, painful crunch for anyone managing an electronics bill of materials.
Indeed, focusing on high-margin AI-related products over traditional consumer chips makes more economic sense for producers. Laptops may only contain 16GB of internal processing space, while Google’s latest AI chip needs 192GB of high-bandwidth memory. Basically, bigger AI chips mean bigger paydays.
Prices for these essential components have already more than doubled this year. Reuters reports that this instability is likely to escalate into a global supply crisis that will increase already high inflation and pose a severe macroeconomic risk. Chinese smartphone makers Realme and Xiaomi warn they may have to increase prices 20-30%, and Taiwanese laptop manufacturer ASUS says it has about four months of inventory before it will have to seriously consider raising prices. Micron, the only U.S.-based memory supplier, is going to completely stop selling chips for consumer products, focusing instead on “meeting demand for high-powered artificial intelligence chips,” per CNBC.
The tight supply of high-bandwidth memory (HBM) is also exacerbated by a specialized production process. According to Financial Times analysis, the manufacturing yield rate for advanced HBM is substantially lower than that for conventional dynamic random-access memory. In fact, The Wall Street Journal podcast recently featured a major analyst stating that the lead time for the most-cutting-edge AI chips has stretched to more than a year. This extended lead time all but guarantees that the volatility will persist deep into 2026, forcing long-term contract renegotiation and planning challenges.
The AI push continues
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“AI is a transformative force for supply chains, essential for competitive differentiation and core to efficiency and innovation,” the report states. The research also confirms that the technology supercharges precision and speed across core functions by minimizing human error, accelerating disruption response, lowering operational costs, and boosting transparency and service levels.
The full report unlocks crucial real-world supply chain applications and industry-specific spotlights, providing the practical framework you need to immediately prepare for all 10 trends. Download it today to discover how these powerful shifts will redefine your supply chain and maximize exciting strategic opportunities in the coming year.
