Global Electronics Association has warned that the rapid expansion of Artificial Intelligence is consuming a growing share of the world’s memory supply, creating mounting constraints for electronics manufacturers across sectors.

In its newly released report titled The Memory Squeeze: How AI-Driven Capacity Reallocation Is Reshaping Memory Supply for Electronics Manufacturers, the association said demand for High Bandwidth Memory (HBM) is prompting suppliers to shift production capacity away from conventional Dynamic Random-Access Memory (DRAM) and NAND technology. Unlike earlier cyclical disruptions, the report noted this trend reflects a structural and sustained reallocation of global supply.

Survey findings cited in the report show that 62% of manufacturers are experiencing limited availability or extended lead times, while 82% reported rising prices, including 33% who said increases were significant. Only 14% of respondents expect market conditions to improve over the next six months. Although 94% said they can still procure memory, most reported limitations that are complicating production planning and increasing costs.

The association said memory remains a critical input across electronics manufacturing, and prolonged supply constraints are now impacting timelines, margins and design flexibility. It added that traditional procurement approaches are becoming less effective as AI-driven buyers absorb a growing share of global supply.

“AI isn’t just increasing demand, it’s reshaping who gets access to critical inputs. This is a fundamental reprioritization of memory in the global electronics ecosystem,” said Shawn DuBravac, chief economist, Global Electronics Association. “As a result, manufacturers outside the AI supply chain are competing in a more constrained and less predictable market. This isn’t a short-term imbalance; it signals a longer-term shift where flexibility in design and supply strategy becomes a competitive differentiator.”

The report noted that the shift is impacting products across categories including smartphones, laptops, vehicles, industrial systems and medical devices. Industry analysts expect pressure on DRAM and NAND supply to persist through 2026 as AI infrastructure spending accelerates, potentially resulting in higher electronics prices, production delays and shortages in select segments.