ADATA chairman warns DRAM shortage could last 10 years

ADATA Chairman Chen Li-bai warned that DRAM supply may take another 10 years to stabilize as AI demand continues to outpace available capacity. Even with memory makers expanding manufacturing worldwide, Chen said DRAM is likely to remain in severe shortage for another decade, making talk of an imminent AI bubble burst premature.

The comments followed a decline in TSMC’s stock despite record earnings, which had prompted speculation that AI enthusiasm was weakening. Chen said the industry can only begin discussing a possible AI bubble burst after 2030, when early estimates could assess whether demand for more DRAM, more NAND Flash and more computing power will continue until 2040 or 2050.

Rising demand is also affecting the broader technology supply chain, including memory, storage, computing, power infrastructure and related areas. Chen’s view points to a prolonged period in which demand continues to exceed supply across key components supporting AI growth.