Global Memory Chip Demand Surges Amid AI Buildout

The global race to build AI infrastructure is turbocharging demand for memory chips. According to World Semiconductor Trade Statistics, global memory chip revenue is projected to surge 250 percent to $804 billion this year and could exceed $1 trillion in 2027. Meanwhile, memory’s share of the overall semiconductor market is forecast to grow from less than 20 percent in 2023 to 55 percent next year, as AI data centers require vast amounts of high-performance memory, tightening supply for other buyers.

“The memory market is at an unprecedented inflection point, with demand materially outpacing supply,” Jeff Janukowicz, research VP for semiconductors at IDC, said in a recent research note. “The rapid expansion of AI infrastructure and workloads is placing significant pressure on the memory ecosystem.” While hyperscalers are willing to pay a premium to secure supply of high-bandwidth memory needed for the AI buildout, consumer electronics companies are struggling with supply constraints and surging costs of these critical components.