NCTA: Growing Memory Chip Shortage Threatens Digital Infrastructure
Routers, laptops, and MRI scanners face tightened supply chains
WASHINGTON, April 14, 2026 – A global shortage of memory chips is taking its toll on U.S broadband deployment, according to NCTA - The Internet & Television Association.
In an April 13 blog post, the trade group — whose members include Comcast and Charter — said the tightening supply of key components was already affecting the cost and availability of equipment needed to build and maintain high‑speed networks.
“For broadband providers, this shift directly affects the cost and availability of the equipment needed to expand and maintain networks,” the trade group said. “For broadband providers, memory chips are a core component of the equipment that delivers connectivity to homes and businesses.”
As manufacturers shift their focus to high-end AI chips, conventional semiconductors are being left behind, tightening supply and raising costs for a wide variety of essential technologies, including routers, MRI scanners, and broadband infrastructure.
NCTA found that 20 percent of a router’s total manufacturing cost comes from chip memory. A year ago, that number was three percent.
“Routers, Wi-Fi gateways, cable modems, and other network infrastructure rely heavily on DDR4 and similar memory technologies. As supply tightens and costs rise, providers are managing increased pressure on equipment procurement and deployment timelines,” the article said.
Data centers already consume about half of global memory supply, which could rise to 70% by the end of the year. In response, manufacturers have pivoted sharply to high-powered DDR5 chips, while cutting supply for the DDR4 chips on which the nation’s broadband infrastructure depends.
The price of DDR4 memory chips has spiked “700-800% year-over-year,” according to the blog. Some chip prices tripled or quadrupled in the spring and fall of 2025, thanks in part to semiconductor tariffs and the shuttering of Chinese manufacturing firm ChangXin Memory Technologies (CXMT).
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