The global push to connect the remaining quarter of the world's population to the internet is being significantly hampered by a critical shortage of memory chips. This crunch is largely attributed to chip manufacturers prioritising the booming artificial intelligence sector, according to the GSMA, a leading mobile industry association.
Key Takeaways
- A global memory chip shortage, driven by AI demand, is slowing efforts to connect billions online.
- Higher smartphone prices are a direct consequence, disproportionately affecting developing regions like Africa.
- The GSMA is advocating for industry-wide collaboration and policy changes to address the issue.
The AI Impact on Connectivity
Vivek Badrinath, Director General of the GSMA, highlighted that the artificial intelligence boom has led to a surge in demand for advanced memory chips essential for AI data centres. This has caused chipmakers to shift production away from less profitable chips used in everyday consumer electronics, such as smartphones and laptops.
This redirection of resources has resulted in a crunch for memory chips, leading to increased prices for these devices. Badrinath expressed concern that this trend will disproportionately affect efforts to bring internet access to lower-income populations, particularly in Africa, where affordable devices are crucial for bridging the digital divide.
The Scale of the Challenge
According to United Nations data from 2025, an estimated 2.2 billion people, approximately 25% of the global population, remained unconnected to the internet. While the GSMA notes that only a small percentage of people live in mobile internet blackspots, the rising cost of essential devices due to the chip shortage presents a significant obstacle.
Industry Response and Future Outlook
The GSMA is actively engaging with various stakeholders across the industry to find solutions. This includes lobbying policymakers for tax reductions or financial incentives and promoting smartphone recycling initiatives. While the expansion of satellite internet services, such as those being developed by Amazon and Elon Musk's Starlink, offers a potential avenue for connectivity, Badrinath cautioned that these are likely to be supplementary rather than primary solutions for most users.
Industry experts, including Chey Tae-won, chair of SK hynix, predict that the chip shortage could persist until 2030. The GSMA estimates that universal mobile internet access could boost global GDP by as much as $3.5 trillion by the end of the decade, underscoring the economic imperative of overcoming this challenge.