India, Jan. 9 -- In late 2025, the global semiconductor ecosystem was experiencing an unprecedented memory chip shortage with knock-on effects for the device manufacturers and end users that could persist well into 2027. DRAM prices have surged significantly as demand from AI data centers continues to outstrip supply, creating a supply/demand imbalance.

IDC was monitoring the memory situation as we prepared the November 2025 device forecasts. The situation, however, has become more acute since publishing, and it's important we address the situation. Although we are maintaining our official forecasts as the situation is still evolving, we will offer here two downside risk scenarios that may play out in two critical markets:

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