China’s SMIC Expects Memory Shortage to Hit Cars, Phones in 2026

Semiconductor Manufacturing International Corp. warned that a shortage of memory may constrain car and consumer electronics production in 2026, flagging potential bottlenecks at a time major chipmakers are prioritizing business with AI accelerator linchpin Nvidia Corp.

Chinese companies are getting more cautious about placing orders with SMIC for early next year because they’re uncertain about securing enough of the memory they need for products, Co-Chief Executive Officer Zhao Haijun said. Part of the uncertainty stems from projections for a surge in memory prices, reflecting robust demand from AI-related applications.