Supply Chain Update: Memory & Storage Market Pressures

The global memory and storage market continues to experience sustained supply and pricing pressures, and industry analysts forecast that these conditions are likely to persist throughout 2026.

As your trusted technology provider, Varlink is committed to helping our partners understand the broader market landscape and confidently navigate the potential impact these pressures may have on technology planning, availability, and pricing.

Market Overview

Manufacturing & Supply Constraints

Leading memory manufacturers, including Samsung, SK Hynix, and Micron, have been progressively reducing production of legacy memory technologies such as LPDDR4X. Manufacturing capacity is being reallocated towards higher-margin technologies including DDR5, HBM, and LPDDR5X.

As a result, availability of certain mobile and embedded memory components is tightening, with further constraint expected as we move through 2026.

In parallel, rapid growth in AI infrastructure is consuming an unprecedented share of semiconductor fabrication capacity. Large-scale AI initiatives are prioritising server-grade memory, reducing available capacity for mobile, embedded, and industrial-focused products.

Demand Imbalance

Despite the industry’s transition toward newer memory standards, a significant proportion of mobile and embedded platforms continue to rely on LPDDR4X. Many mid-tier processors do not fully support LPDDR5X, sustaining demand for older technologies at a time when supply is diminishing.

Anticipation of future shortages has also driven accelerated purchasing and stockpiling across the market, placing additional pressure on already constrained supply chains.

Cost Inflation & External Factors

Rising raw material costs, limited PCB substrate availability, and strategic supplier pricing are contributing to increased component costs across the hardware ecosystem. These pressures are being compounded by ongoing geopolitical uncertainty and supply chain disruption, adding volatility to global manufacturing and logistics.

Collectively, these factors are driving ongoing fluctuation in availability, lead times, and pricing across multiple hardware categories.

How Varlink Is Supporting Our Partners

Varlink’s role is to guide technology decisions with confidence, combining technical expertise with real-world market insight.

Leveraging our broad portfolio, strong vendor relationships, and deep technical knowledge, we are working closely with our partners to:

• Provide early visibility of potential supply constraints
• Support platform selection based on availability and lifecycle considerations
• Secure inventory where appropriate
• Help partners plan deployments with greater certainty
• Recommend alternative solutions when market conditions require flexibility

Our sales and technical teams are fully briefed on current market dynamics and are available to support project planning and specification decisions.

Act Now

If you would like to discuss how current memory and storage market conditions may affect your existing or upcoming projects, please contact your Varlink account manager or email enquiries@varlink.co.uk.

We value your partnership and remain committed to supporting you through evolving market conditions with clear guidance, dependable support, and trusted technical expertise.

Trusted technology. Expert guidance. Reliable outcomes.