The memory shortage is usually described in terms of price and allocation. Inside the companies that design with memory, a large share of the cost shows up somewhere else: in engineering effort.

Key findings

• According to EETech's 2026 Memory Market Study, conducted with MEMPHIS Electronic, 95% of engineers say memory market conditions changed their design or sourcing approach in the past 12 months.
• Nearly half (46%) report increased engineering effort, with requalifying alternative components (39%), increasing inventory purchases (38%), changing suppliers (37%) and redesigning a product (36%) close behind.
• Only 22% of engineers feel very or extremely confident forecasting their memory needs a year out, and 13% entered long-term contracts or supply agreements in the past 12 months.

How is the memory shortage affecting engineering teams?

It is adding engineering work. In EETech's 2026 Memory Market Study, in partnership with MEMPHIS Electronic, 46% of engineers said memory market conditions caused their organization to increase engineering effort. Requalifying alternative components (39%), increasing inventory purchases (38%), changing suppliers (37%), and redesigning a product (36%) cluster close behind.

Further down are the outcomes that cannot be absorbed quietly: 24% delayed a product launch, and 11% discontinued a product. The cause is external, but a large share of the cost is paid inside the organization, in engineering effort as well as component spend.

How can memory suppliers reduce the cost of qualification?

By giving engineering time back. Every new part an engineer considers means datasheets to compare, footprints to check, validation to run, and documentation to file. With 39% of engineers requalifying alternative components, the supplier that is easiest to qualify has an advantage before price is discussed. That advantage is buildable:

• Pin-compatible alternates that drop into existing layouts
• Pre-validated reference designs
• Complete qualification documentation, available without a request
• Cross-reference and alternate-part search that works on the first try
• Samples delivered in days rather than weeks

For how engineers' technology choices are shifting at the same time, see why engineers are choosing older memory over higher density.

Can engineers forecast their memory needs?

Most cannot with confidence. Only 22% of engineers feel confident (extremely or very) predicting their memory requirements over the next twelve months, and one in seven has no confidence at all. By contrast, only 7% were unsure when describing current market conditions. Engineers read the present clearly and the future poorly.

That matters because forecasting is how allocation decisions get made. When availability and price dominate sourcing concerns, as covered in why engineers rank availability above performance, what a company will need likely depends on what it can obtain.

"We have to buy without knowing the price with an NCNR order. Lead times are not honored either."

Why aren't long-term supply agreements more common?

They likely ask for commitments engineers cannot make. Only 13% of engineers entered a long-term contract or supply agreement in the past 12 months, despite availability and pricing being their leading concerns. These agreements typically require volume and price commitments, and fewer than a quarter of engineers are very or extremely confident in their own twelve-month forecasts.

Programs that do not depend on a confident forecast fit this market better:

• Distributors can carry the risk through buffer or consignment stock and scheduled orders with volume flexibility.
• Suppliers can offer shorter-horizon agreements and contracts that flex on volume, rather than requiring a fixed number twelve months out.

What impact do engineers expect over the next 12 months?

Most expect it to hurt. Asked to name the main impact they expect from the memory market over the next year, 47% pointed to profitability and 33% to delivery or timing. 16% were unsure, and only four respondents in 102 expect no impact at all.

The suppliers and distributors who reduce engineering effort and work around weak forecasts are not waiting for the market to settle. They are addressing the problems engineers report right now.

Frequently asked questions

How is the memory shortage affecting engineering teams?

46% of engineers in EETech Research's 2026 Memory Market Study report increased engineering effort, with requalifying alternative components (39%), increasing inventory purchases (38%), changing suppliers (37%) and redesigning a product (36%) close behind.

How many engineers delayed product launches because of the memory market?

24% of engineers report their organization delayed a product launch in the past 12 months, and 11% discontinued a product.

How many engineers use long-term memory supply agreements?

13% entered long-term contracts or supply agreements in the past 12 months. Low forecast confidence is a likely reason: only 22% of engineers feel very or extremely confident predicting their memory needs a year out.

What impact do engineers expect from the memory market next year?

Most expect a negative impact. 47% expect it to affect profitability and 33% delivery or timing. 16% are unsure, and only four in 102 expect no impact.

The full 2026 Memory Market Study includes the complete business impact data, forecast confidence results, and recommendations for memory suppliers and distributors.

Download the 2026 Memory Market Study

‍