A surprising new bottleneck has emerged in the global AI infrastructure build-out: memory chips. Major manufacturers including SK Hynix, Micron and Samsung Electronics have effectively run out of capacity, sparking a scramble among customers to secure supply.

Contract prices for certain DRAM chips surged 78% in the fourth quarter alone, with another 50% jump forecast by March. This price shock is creating a squeeze — especially for makers of smartphones, PCs and automobiles — as memory suppliers prioritize high-margin AI chips over "legacy" components. The result is a widening supply gap that threatens to leave consumer electronics companies struggling to secure essential parts through 2027.

MS Hwang, research director at Counterpoint Research, joins John Lee and Bloomberg News technology editor Vlad Savov on the Asia Centric podcast. They unpack the dynamics of the shortage and how Chinese upstarts are racing to fill the void.