News Global AI Infrastructure Buildout to Drive Memory Chip Shortages Through 2027, Says Synopsys CEOAI Infrastructure Buildout to Drive Memory Chip Shortages Through 2027, Says Synopsys CEO
Synopsys CEO Sassine Ghazi predicts memory chip shortages will continue through 2026-2027 due to AI infrastructure demand outpacing manufacturing capacity expansion, which requires at least two years to scale. The shortage benefits major memory makers Samsung, SK Hynix, and Micron in what analysts call a pricing "super cycle," while driving up costs for smartphones, PCs, and gaming consoles. Companies like Xiaomi expect phone prices to rise in 2026 as most available memory chips are directed toward AI infrastructure, leaving other markets with inadequate supply capacity.
*this image is generated using AI for illustrative purposes only.
The artificial intelligence infrastructure buildout will continue driving memory chip shortages through 2026 and 2027, as chip manufacturers struggle to keep up with rapidly growing demand, according to Synopsys CEO Sassine Ghazi.
Speaking to CNBC, Ghazi, who oversees the semiconductor design tool company, explained that the supply crunch is expected to persist because expanding chip manufacturing capacity to meet current demand levels will require at least two years to implement.
Current Market Dynamics
The memory chip shortage has created an imbalanced market where most available chips are being directed toward building AI infrastructure, leaving other sectors without adequate supply.
"But many other products need memory, so those other markets are starved today because there is no capacity left for them," Ghazi said.
Memory chips serve as critical components in nearly all electronic devices today, used primarily for data storage across various applications.
Impact on Memory Chip Manufacturers
The unprecedented demand has created favorable conditions for memory chip producers, with Ghazi noting that "now it's a golden time for the memory companies."
| Company Impact: | Details |
|---|---|
| Major Beneficiaries: | Samsung, SK Hynix, and Micron |
| Market Condition: | Continued revenue growth from sustained demand |
| Analyst Assessment: | Pricing surge described as "super cycle" |
The sustained demand continues to boost revenue for the world's three largest memory chip makers, creating what some analysts describe as a "super cycle" in pricing.
Consumer Electronics Price Impact
The memory chip shortage has driven up prices across multiple consumer electronics categories:
- Smartphones
- Personal computers
- Gaming consoles
Chinese technology company Xiaomi, one of the world's largest smartphone manufacturers, indicated last year that it expects phone prices to increase in 2026 due to these supply constraints.
Market Outlook
The timeline for resolution remains extended, with the shortage expected to persist through 2027 as the industry works to balance AI infrastructure demands with broader market needs. The current supply-demand imbalance reflects the broader transformation occurring across the semiconductor industry as artificial intelligence applications continue driving unprecedented demand for memory components.
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