Finance · South Africa
Rising AI Memory Demand Drives Chip Shortages and Higher Costs
Moneyweb · 2026/02/22
Summary
The demand for memory chips is rising rapidly due to the growing use of artificial intelligence (AI) technology. This has caused memory prices to increase sharply as big tech companies, called hyperscalers, are purchasing large amounts of these chips to support AI tasks. The high memory costs are affecting many industries, including smartphones, personal computers, and the automobile sector, as these devices rely on memory chips to function. As a result, there is a shortage of chips for other companies, leading to a chip crisis. This shortage and price rise could make electronic products more expensive and harder to find for everyday consumers in South Africa. The chip industry is struggling to keep up with the AI-driven demand, creating challenges across many sectors reliant on this important technology.
OnABudget takeaway: Higher memory chip prices mean South African consumers might face increased costs for smartphones, computers, and even cars. Small businesses and investors should watch this trend, as supply challenges could affect product prices and availability.