Western Digital Chairperson Hong Lin issued a warning on May 28, 2026, regarding critical data center component shortages. Intense demand for AI infrastructure is driving fierce competition for essential parts like networking chips.
The company expects this scarcity to drive hardware prices to record highs. These supply constraints could potentially slow the global development of AI capabilities.
This announcement follows February 2026 reports that the company's 2026 hard disk drive production is already sold out. Western Digital anticipates that these widespread supply issues will not see relief until late 2027 or 2028.