A new wave of chip shortages is emerging across global supply chains this March, driven by escalating geopolitical tensions and surging demand for memory components.
Multiple industry reports and government warnings indicate that the semiconductor sector could face its most disruptive period since the pandemic era.
Warnings intensified after China’s commerce ministry cautioned that a global chip shortage may be imminent due to the deepening dispute between Dutch semiconductor firm Nexperia and its China-based operations. The conflict stems from the Dutch government’s 2025 decision to seize control of Nexperia from its Chinese parent Wingtech, an action that triggered retaliatory export restrictions and disrupted automotive production worldwide. Tensions escalated again on 7 March 2026 when Nexperia’s Chinese unit reported that its Dutch headquarters had disabled employee system access, prompting renewed fears of supply chain instability.
Alongside these political disputes, the semiconductor industry is confronting a severe tightening of global memory chip supplies. According to IDC, memory shortages for DRAM and NAND have intensified, with demand fuelled by rapidly expanding AI infrastructure outpacing supply throughout 2026. This imbalance has already pushed up prices and forced manufacturers to accelerate shipments ahead of further cost increases. Analysts now expect both smartphone and PC markets to shrink significantly during 2026 as higher component costs curb production volumes.
The situation is compounded by what some analysts have dubbed “RAMageddon” as AI companies consume unprecedented quantities of memory. The limited number of major memory manufacturers means that many consumer devices, from laptops to gaming consoles, will face shortages and rising retail prices. Industry experts warn that this trend will continue well into 2027, with little prospect of returning to pre-2025 pricing levels.
Further pressure comes from large technology companies preparing for sustained scarcity. Dell, HP and other major hardware makers have warned that memory supplies are tightening, with some firms stockpiling components to mitigate rising costs. Counterpoint Research anticipates memory module prices could rise by up to 50 percent through the first half of 2026, reinforcing fears of widespread supply disruption across electronics and automotive sectors.
Taken together, these developments signal a challenging year ahead for global manufacturing. With geopolitical tensions unresolved and AI-related demand continuing to surge, the chip shortage expected in March 2026 represents a structural shift rather than a temporary setback.
