Memory supply shortfall will cause chip shortage to spread to other segments (www.tomshardware.com)

A new report reveals that by 2026, data centers will consume an unprecedented 70% of the world's memory chips, a shocking statistic driven primarily by the surging demand for AI technologies. This shift is highlighted by the Wall Street Journal, which notes that the repercussions of this massive consumption will extend beyond the tech sector, affecting industries such as automotive, televisions, and other consumer electronics. Many manufacturers are already experiencing supply chain disruptions reminiscent of the challenges faced during the COVID-19 pandemic, pushing prices up significantly across various markets. This situation signals a pivotal moment for the AI/ML community and the broader tech landscape. As manufacturers downsize or discontinue legacy chip production to accommodate the AI boom, products reliant on older memory types may face increasing scarcity and higher costs, with estimates suggesting that memory could account for up to 30% of the price of gadgets like smartphones. Industry analysts, including those from IDC and TrendForce, warn that this represents a "permanent reallocation" of supplier capacity towards data centers, hinting at long-term changes in how hardware is produced and priced, which could have profound implications for consumer access and technology development in the years to come.