Fearing RAM price increase, Lenovo spends money to stockpile

Lenovo's recent move reveals the extent of scarcity in the components market, as AI demand pushes many technology industries into prolonged shortages.

Lenovo increases chip stockpiling. Photo: Bloomberg .

Lenovo is proactively buying and stockpiling large amounts of computer memory and other key components to cope with the risk of supply shortages, as the booming AI market puts great pressure on the entire hardware industry.

Lenovo’s component inventory is about 50% higher than normal, Lenovo Chief Financial Officer Winston Cheng told Bloomberg on November 24. He said the race to build and expand AI data centers globally is pushing up component prices, affecting even consumer electronics makers.

“The prices are going up very fast. I think it’s unprecedented because of the demand related to AI,” Cheng said.

Lenovo’s leadership stressed that his company has advantages in scale and long-term contracts, thereby ensuring stable supply during volatile market periods. “Companies with ready supply will be in a better position,” Mr. Cheng added.

The Chinese tech giant aims to not pass on the increased costs to customers in the current quarter to maintain sales growth momentum. The company will continue to balance price and supply capacity in 2026 to ensure a sustainable market strategy.

Lenovo said in November it had secured enough memory chips to last through 2026 and was confident it could weather shortages better than its rivals, a move that came as many manufacturers warned of a potential supply crunch.

Lenovo is confident that it will not increase product prices thanks to its strategy of stockpiling components. Photo: Bloomberg .

SMIC, China's largest chipmaker, said a shortage of memory chips, a key component for most electronic devices, could directly impact production of cars and consumer devices by 2026. Xiaomi, a major Chinese smartphone maker, also predicted that mobile device prices could rise next year if supplies continue to be tight.

Lenovo’s stockpiling of components underscores the growing pressure on global supply chains from the AI ​​frenzy, and reflects the company’s efforts to maintain its position in the increasingly competitive PC market.

Source: https://znews.vn/hanh-dong-khon-ngoan-cua-lenovo-post1605621.html