The global memory market is entering an even tighter supply crunch, according to Intel CEO Lip-Bu Tan at the AI Infra Summit in Santa Clara. He said the ongoing shortage is already stalling projects and driving component prices up by 5–7 times.

Intel CEO’s Warning at AI Infra Summit

Lip-Bu Tan pointed out he’d previously flagged memory as a looming bottleneck: “When I said early last year that memory could become a serious choke point, I don’t think many people realized it. Well, it’s happened—and it’s only going to get worse.”

Impact: Project Delays and Price Spikes

According to Tan, the limited availability of key components is already messing with deployment timelines. Companies are shelving projects due to the memory crunch. The market’s seeing price jumps in the 5–7x range, putting huge pressure on budgets and deadlines.

The Bottleneck: Manufacturing Capacity

Tan added that fab capacity remains seriously constrained. With the shortage intensifying, memory has effectively become a systemic blocker for new initiatives. The Intel chief expects supply pressure to persist—and only ramp up from here.