Artificial intelligence is about to spark a once-in-a-generation technology shift—on the scale of steam power and electricity—according to Transcend Information chairman Chung-Won Shu. And if that prediction plays out, the ripple effects won’t just be felt in software. They could hit the hardware supply chain in a big way, especially when it comes to memory.
Shu believes the accelerating AI boom is setting the stage for a major “memory supercycle,” with DRAM and NAND flash demand rising so quickly that the market could run into shortages in 2026 and 2027. More notably, he suggests the imbalance may not be a brief squeeze, but something that could persist, leaving memory supplies undersupplied for an extended period.
Why does this matter? DRAM and NAND flash are foundational components in modern computing. DRAM is critical for performance in everything from PCs to data center servers, while NAND flash underpins storage in smartphones, SSDs, and enterprise systems. As AI models grow larger and more widely deployed, they require massive computing resources—and memory is one of the most important bottlenecks. When memory availability tightens, it can affect production timelines, pricing, and device availability across multiple industries.
If shortages materialize, consumers and businesses could see knock-on effects such as higher component costs, fluctuating SSD and device pricing, and more pressure on manufacturers to secure stable supply. For the tech industry, a prolonged period of undersupply could also accelerate investments in memory production capacity and encourage companies to rethink hardware design, efficiency, and sourcing strategies.
Shu’s message is clear: AI isn’t just another trend—it’s a transformative force that could reshape technology’s next era. And as that era takes hold, the world’s appetite for DRAM and NAND flash may grow faster than supply can keep up, potentially defining the hardware landscape of 2026 and beyond.
