AI Boom Creates Critical Shortage in High-Bandwidth Memory, Threatening Electronics Supply Chain
TOKYO – the surging demand for artificial intelligence is triggering a severe shortage of high-bandwidth memory (HBM), a crucial component for AI processing, sparking warnings of price increases and potential delays for a wide range of consumer electronics. The bottleneck is impacting manufacturers across Asia and globally,raising concerns about the future availability and cost of everything from smartphones and gaming consoles to data centre servers.
HBM, which stacks multiple layers of DRAM to deliver faster connections and higher transfer rates, has become indispensable for powering the latest AI applications. As AI models grow in complexity, requiring exponentially more processing power, demand for HBM is far outpacing supply. This imbalance threatens to slow the rollout of new AI-powered products and could inflate prices for consumers. The situation highlights the fragility of the global semiconductor supply chain and the critical importance of specialized components like HBM in the age of artificial intelligence.
Currently, South Korean giants Samsung Electronics and SK Hynix, along with Taiwan’s TSMC, dominate HBM production. According to industry analysts, current HBM supply is struggling to meet even 50% of demand, a figure expected to worsen in the coming months. “The demand is just exploding,” said Lauly Li, a technology analyst at Nikkei Asia. “Everyone wants to get their hands on HBM, but there simply isn’t enough to go around.”
The shortage is notably acute for HBM3, the latest generation of the technology, which is essential for cutting-edge AI applications. Lead times for HBM3 are stretching to over a year, forcing companies to scramble for alternative solutions or delay product launches. Kim Jaewon, a semiconductor industry expert, notes that the situation is not limited to AI-specific hardware. “Even consumer electronics incorporating AI features, like advanced image processing in smartphones, are feeling the pinch.”
The impact is already being felt. Nvidia, a leading designer of gpus used in AI, has warned of potential supply constraints. Smartphone manufacturers are reportedly re-evaluating their product roadmaps, and gaming console producers are bracing for potential delays in releasing new models.
Industry insiders predict the HBM shortage could persist well into 2026, even as manufacturers invest heavily in expanding production capacity. The long lead times for building new fabrication facilities and the complexity of HBM manufacturing mean that supply will struggle to catch up with demand in the short term. This situation underscores the need for diversification in the semiconductor supply chain and continued investment in advanced memory technologies to avoid future disruptions.
