China\'s big tech companies said they will step up production and adoption of their own AI chips this year, accelerating localisation of key AI infrastructure parts even as a possible return by Nvidia to China is being discussed. Tencent and Alibaba outlined plans to expand use of China-designed semiconductors and in-house chips. Reuters reported U.S. approval for some H200 purchases, but supply remains unclear, and Chinese firms may not place orders.

Global memory supply may meet only 60 percent of demand through 2027, as capacity additions focus on AI server high-bandwidth memory and lag fast-rising demand. New production lines are largely expected to come on stream in 2027 or 2028. Analysts see limited near-term output gains and rising price pressure, with DRAM and NAND contract prices forecast to jump in 2026. Higher memory costs are increasingly reflected in device manufacturing costs and broader pricing pressure.