Descriptions:
A Bloomberg Technology Asia deep-dive reveals the global memory chip shortage has worsened far more rapidly than analysts expected, with IDC revising its 2026 smartphone market forecast from a 1% contraction all the way to a 13% decline — a drop the research firm says will surpass the pandemic’s impact and recent US tariff effects combined. IDC’s VP for Devices Research explains the mechanism: AI data centers are diverting manufacturing capacity toward high-bandwidth memory (HBM), starving the conventional device supply chain.
Memory now accounts for 20-30% of a smartphone’s total bill of materials, with costs rising at double- or triple-digit rates. The sub-$150 segment — roughly 30% of the global market, dominated by Chinese vendors — faces the sharpest pressure, with much of that category at risk of disappearing by late 2026. Premium players like Apple and Samsung have more room to absorb costs, though Samsung has already raised consumer prices.
Samsung and SK Hynix emerge as the structural winners, with analysts projecting operating margins of around 80% — higher than Nvidia or TSMC — and a combined market cap that has surpassed China’s two largest tech companies. Long-term supply agreements are being renegotiated upward at an accelerating pace, and the shortage is expected to persist through 2027 before any meaningful moderation in prices.
📺 Source: Bloomberg Technology · Published February 27, 2026
🏷️ Format: News Analysis
