Lenovo stockpiling PC memory due to ‘unprecedented’ AI squeeze
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Lenovo Group is stockpiling memory and other critical components to navigate a supply crunch brought on by the boom in artificial intelligence.
PHOTO: REUTERS
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BEIJING – Lenovo Group is stockpiling memory and other critical components to navigate a supply crunch brought on by the boom in artificial intelligence.
The world’s biggest PC maker is holding on to component inventories that are roughly 50 per cent higher than usual, chief financial officer Winston Cheng told Bloomberg on Nov 24.
The frenzy to build and fill AI data centres with advanced hardware is raising prices for producers of consumer electronics, but Lenovo also sees opportunity in this to capitalise on its stockpile.
“The price is going very, very high, of course, and I think it’s been unprecedented in terms of this rate driven by the AI demand,” Mr Cheng said.
His company has long-term contracts in place and the benefit of scale, he added, and “those that have the supply actually would be able to have a position in the market”.
Beijing-based Lenovo will aim to avoid passing on rising costs to its customers in the current quarter, as it wants to sustain 2025’s strong sales growth, according to the CFO. He said the company will strike a balance between price and availability in 2026.
Lenovo said last week that it has enough memory chips for all of 2026 and it can navigate any shortages better than its competitors.
Top Chinese chipmaker Semiconductor Manufacturing International warned earlier in November that a shortage of memory – essential to all modern electronics – may constrain car and consumer electronics production in 2026. Already, smartphone maker Xiaomi has said it expects the supply shortfall to push up the prices of mobile devices in 2026. BLOOMBERG
