RAM shortage hits some of the biggest Chinese smartphone makers: What it means for companies like Xiaomi, Oppo, Vivo and customers

A global memory chip shortage caused by an increase in artificial intelligence (AI) infrastructure demand seems to have begun to hit the production for some of the world’s largest smartphone manufacturers. Speaking at a groundbreaking ceremony for a new $100 billion production mega-site, Micron Technology Executive VP Manish Bhatia warned that the supply crunch has accelerated over the past quarter. Reportedly, the shortage is forcing major Chinese handset makers, including Xiaomi, Oppo, Vivo and Transsion, to slash their 2026 shipment targets.“The shortage we are seeing is really unprecedented. High-bandwidth memory is consuming so much available capacity that it’s leaving a tremendous shortage for phones and PCs,” Bhatia said, according to Bloomberg.The RAM, or memory, crisis stems from a shift in the semiconductor market wherein high-bandwidth memory (HBM), which is essential for AI accelerators like those made by Nvidia, is consuming a a large share of global wafer capacity. This has left consumer facing industry facing a severe deficit. This means that 'affordable' smartphones from several brands are likely to be more expensive, and due to that they may see a decline in overall sales.Citing a report by Chinese media outlet Jiemian, Bloomberg noted that Xiaomi and Oppo have lowered shipment orders by more than 20% while Vivo is cutting annual projections by nearly 15%. Meanwhile, Transsion, which makes Tecno, Infinix and iTel smartphones, has trimmed its forecast to below 70 million units.While flagship models remain a priority, manufacturers are reportedly ‘killing’ their mid-to-low-end portfolios. To stay profitable, some brands are even considering bringing back 4GB RAM options or reusing older components.In the meantime, Samsung and SK Hynix are reportedly seeking price hikes of 60% to 70% for server DRAM in Q1 2026, with ripple effects expected to hit the smartphone sector immediately.“What we’ll be doing at our Asian sites is continuing to transition to the next generation of technology,” Bhatia said. New wafer capacity, on the other hand, will take place almost entirely in the US, he added.