Memory semiconductors are essential for everyday consumer products, such as smartphones and personal computers. A specialized category of memory chips is also critical to the artificial intelligence revolution. High bandwidth memory chips sit directly next to Nvidia’s accelerated computing processors on AI servers, forming the backbone of modern data centers. But there’s a problem.

There is a global shortage of memory semiconductors. Companies that manufacture memory chips can meet only about 66% of global demand for these essential components of the modern economy. Suppliers are effectively sold out through all of 2026. This shortage has driven the share prices of the three companies that manufacture HBM chips sharply higher over the past year. Samsung and SK Hynix of South Korea, along with Micron, America’s memory chip champion, hold a dominant position in advanced memory. Importantly, this advantage was earned through superior technology and execution, not price fixing or cartel behavior.