CEO of China’s biggest chipmaker has a memory chip warning: ‘People don’t dare…’

China’s largest contract chipmaker, Semiconductor Manufacturing International Corp (SMIC), is worried about a growing shortage of memory chips. According to a report by the news agency Reuters, the company has claimed that the memory chip shortage is causing customers to hesitate in placing orders for other types of chips as well. During an earnings call, Zhao Haijun, SMIC’s co-CEO, said: “People don’t dare place too many orders for the first quarter next year. Because no one knows how many memory (chips) will actually be available — how many phones, cars, or other products it can support.” This concern arises as the artificial intelligence (AI) boom continues to consume a massive share of the available memory chip supply, potentially leading to a shortage in the consumer electronics and automotive sectors next year.