Chipflation Navigating A Memory Crisis

Surging AI-driven demand for memory has created a structural supply bottleneck. This 'Chipflation' forces priority allocation to AI infrastructure, squeezing margins for traditional consumer hardware.

Key Takeaways

• 1.Memory chips are emerging as a structural bottleneck in the AI economy, with demand from AI datacenters crowding out traditional consumer sectors like smartphones and PCs.
• 2.A two-tier market is emerging where AI-hyperscalers secure supply via Long-Term Agreements (LTAs), while non-AI buyers face higher prices and supply allocation risks.

Table of Contents

• Executive Summary
• Memory – A Multi-Year Bottleneck
• HBM Cannibalization and the Two-Tier Market
• Chipflation Passthrough and Sector Impact
• Chips, Growth and Inflation – A Macro Perspective
• US/China Policy Options Don't Offer Near-term Relief
• Primer: Memory 101 – Types, Market Structure and the Cycle
• Appendix: Memory Demand per Gigawatt of AI Data Center Deployment

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