Artificial intelligence (AI) is booming and requires ever larger quantities of chips. Although leading manufacturers want to expand production, they will only be able to meet about 60 percent of global demand, according to Nikkei Asia. This ongoing shortage is expected to continue throughout the year.
Even where new factories are being built, some of them are not expected to reach full production capacity until 2027 at the earliest. Once these systems are operational, they also require additional time to reach efficient production levels.
Too much demand, not enough production
According to analysts, an annual production increase of around twelve percent is necessary in order to meet current demand. However, current plans are significantly lower. Accordingly, the balance between supply and demand for memory is not expected to normalize before 2028.
