AI growth drives memory shortage and benefits Chinese chipmakers

The expansion of artificial intelligence has put pressure on the global supply of memory chips and created opportunities for Chinese companies. ChangXin Memory Technologies (CXMT), a DRAM manufacturer, reported revenue of 150.31 billion yuan in the first half of 2026, an 873.64% increase compared to the same period in 2025, according to data from consultancy Jiwei.

This surge reflects a combination of limited supply, rising prices, and high factory utilization. The company, which also produces components for mobile phones and servers, made its debut on the Shanghai Stock Exchange in July, strengthening its market position.

Why AI demand is driving up memory costs

The race for production capacity has led suppliers to prioritize high-performance chips for servers, where profit margins are higher. According to TrendForce, this allocation reduces the availability of memory for personal computers and smartphones, increasing pressure on prices.

The consultancy forecasts that contract prices for conventional DRAM will rise by 10% to 15% in the fourth quarter of 2026, while NAND Flash memory prices could increase by 15% to 20% during the same period.

Changes in the production chain, coupled with government subsidies, have also benefited CXMT in the mobile device memory segment, according to a TrendForce analysis.

Growth in exports and profits in the semiconductor sector

This trend is not limited to a single company. Jiwei’s study found that the net profit of 186 semiconductor companies listed on mainland China’s stock exchange grew by 607.2% in the first half of 2026, with memory-related companies being the primary drivers of this growth.

Foreign trade data confirms this trend: China exported $177.28 billion worth of integrated circuits between January and June 2026, a more than 96% increase compared to the first half of 2025, according to the General Administration of Customs.

Another beneficiary is Yangtze Memory Technologies (YMTC), a NAND memory manufacturer that has also received support from the state semiconductor fund and local governments, according to a Reuters report.

Impact on Chinese businesses and consumers

The rising cost of chips has caused friction within China. In July, technology and electronics companies appealed to the Ministry of Industry to complain about price increases by CXMT and YMTC, blaming them for delays in new product launches.

Sources close to the negotiations revealed that CXMT resisted Huawei’s requests to moderate price increases. In some server memory module contracts, the Chinese manufacturer’s prices exceeded those of Samsung’s equivalent products.

The impact on consumers is already evident. Brands such as Oppo, Vivo, and Honor have raised smartphone prices in response to higher memory costs, according to the Xinhua news agency.

Outlook for the coming months

TrendForce predicts that pressure on DRAM supply for computers could intensify in 2027 if more production capacity is allocated to server applications.

The expansion of artificial intelligence continues to shape the semiconductor market, benefiting Chinese manufacturers while creating challenges for electronics companies and end consumers.

Key takeaways:

• AI demand drives the prioritization of server chips, reducing supply for PCs and smartphones.
• CXMT and YMTC achieved significant revenue and profit growth, supported by state backing.
• Chinese integrated circuit exports grew by over 96% in the first half of 2026.
• Price increases are affecting technology companies and consumers, leading to adjustments in products like smartphones.
• The memory shortage is projected to worsen in 2027, according to industry forecasts.