Thursday, January 22, 2026
Economy & Markets
3 min read

Memory Chip Crunch Persists Despite Production Increases

South China Morning Post
January 21, 20261 day ago
Global memory chip crunch to persist even as Samsung, SK Hynix, Micron boost production

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Micron plans to acquire a Taiwanese fabrication facility for $1.8 billion to boost memory chip production. The acquisition aims to address the global shortage where demand exceeds supply. Mass production of DRAM chips is anticipated by 2027, with the facility expected to significantly increase Micron's global capacity.

Micron on Saturday said it aimed to meet global memory chip demand via its US$1.8 billion acquisition of a fabrication facility from Taiwanese firm Powerchip Semiconductor Manufacturing Corp, which is expected to close in the second quarter. This would enable “Micron to increase production and better serve our customers in a market where demand continues to outpace supply”, said Manish Bhatia, executive vice-president of global operations at Boise, Idaho-based Micron. Mass production of advanced dynamic random-access memory (DRAM) chips at the site is expected by 2027. The first phase of its operation is estimated to contribute over 10 per cent of Micron’s total global capacity relative to 2026 fourth-quarter levels, according to Taipei-based research firm TrendForce.

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    Memory Chip Crunch: Production Boosts Won't End Shortage