- Lenovo reacts early to tightening reminiscence provides pushed by aggressive AI demand
- Semiconductor giants shift manufacturing towards high-bandwidth reminiscence for AI servers
- Conventional reminiscence output shrinks whereas world pricing strain intensifies quickly
Lenovo has confirmed it’s stockpiling reminiscence chips and different important parts in response to a tightening world provide chain pushed by synthetic intelligence demand.
The corporate’s management described the state of affairs as an unprecedented AI squeeze, with accelerated shopping for from knowledge middle operators and cloud platforms constraining availability.
Lenovo’s inventory levels are now approximately 50% higher than normal, affecting its entire range of devices, including the mini PC phase.
Why the memory market is under pressure
The spike in memory prices is tied to a broader shift within the semiconductor industry.
Major producers, including Samsung and SK Hynix, have diverted vital manufacturing capability towards high-bandwidth reminiscence, which is used for AI servers.
This transition has decreased the output of conventional reminiscence chips usually utilized in client PCs, smartphones, and gaming gadgets.
Consequently, world reminiscence costs have climbed steadily in latest months, affecting producers throughout the electronics business.
This case is already influencing a number of product strains, significantly methods geared toward business laptop consumers who depend upon secure element availability.
Lenovo executives stated the buildup is a part of a longer-term plan to keep away from disruptions by 2026.
The corporate not too long ago signed long-term provide agreements meant to safe reminiscence availability all through subsequent 12 months
Its CEO additionally said the agency believes these preparations symbolize optimum contracts beneath present circumstances.
“We signed the optimum contract with key element suppliers to make sure we’ve sufficient provide for subsequent 12 months,” Yang Yuanqing stated.
“General, we don’t see a bubble as a result of the following stage might be AI democratization.”
Lenovo acknowledged increased reminiscence prices may increase the costs of client electronics within the upcoming quarters, noting AI-related spending had already influenced its latest earnings, with further prices partially offsetting regular PC and machine gross sales.
Regardless of that, Lenovo stated it goals to take care of gross sales momentum and keep away from passing rising element costs on to customers at any time when doable.
Different corporations, together with Xiaomi, warned that smartphone consumers might face elevated costs subsequent 12 months as a result of identical provide constraints.
That stated, Lenovo’s newest monetary outcomes confirmed income development and improved adjusted revenue, whilst its shares stay decrease for the 12 months.
Nonetheless, semiconductor makers count on AI-driven demand to proceed shifting manufacturing priorities, which may maintain provides tight for conventional reminiscence merchandise.
Through Bloomberg
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