NCTA Points to AI-Driven Chip Shortage Threatening Internet Infrastructure

NCTA, the internet and television association, says a growing global shortage of memory chips is impacting the infrastructure that powers the internet as AI demand pushes manufacturers toward higher-performance chips for data centers.

This shift is reducing supply of widely used memory components like DDR4, a critical chip found in broadband equipment, routers, medical devices, vehicles, and industrial systems. The three manufacturers produce over 90 percent of global memory redirect capacity to AI-focused products.  

For broadband providers, the impact is significant: DDR4 prices have surged 700–800 percent year-over-year, and memory now accounts for more than 20 percent of router manufacturing costs, up from just 3 percent last year, according to NCTA.

With data centers projected to consume up to 70 percent of global memory supply in 2026, the shortage is placing increasing pressure on America’s digital infrastructure and the sectors that depend on it, including healthcare, banking, transportation, energy, and public safety.