New Delhi, March 13 -- The world's gadget-makers-who assembled this week in Las Vegas for the Consumer Electronics Show-would be forgiven for harbouring mixed feelings about the year ahead. Excitement over the prospect of clever new devices powered by artificial intelligence is as strong as ever. Yet by gobbling up memory chips, which are essential for everything from smartphones and personal computers (PCs) to gaming consoles and cars, AI is creating a supply crunch for electronics-makers.

Jeffrey Clarke, chief operating officer of Dell, a manufacturer of computers, has called the situation "the most unprecedented mismatch in demand and supply" he has ever seen. Xiaomi, a Chinese smartphone-maker, has warned of delays and rising prices....