Samsung Warns Global Memory Chip Shortage Will Worsen Through 2028

Samsung Electronics announced that global DRAM and NAND memory chip shortages will intensify through 2027 and persist into 2028. Massive demand from AI data centers continues to absorb the world's silicon fabrication capacity.

Jaejune Kim, Executive Vice President of Samsung's memory chip division, confirmed the timeline during the company's second-quarter earnings call. He stated that new manufacturing capacity cannot keep pace with server and enterprise orders.

"We believe it will be unlikely to see any increase in incremental supply through 2028. The supply constraints are expected to become even more severe in 2027."

Samsung recorded 171.5 trillion Korean won in total revenue for the quarter. Operating profit reached 89.5 trillion Korean won, giving the company a 52% operating margin. Memory chip sales drove almost all of the earnings gain, with operating profits in the semiconductor division rising nineteen times compared to the previous year.

Data center expansion is absorbing most available DRAM and NAND production. Tech firms are building facilities packed with graphics processing units and High Bandwidth Memory.

Samsung is directing 60 to 70% of its memory production into long-term supply contracts with data center operators. These multi-year agreements extend up to five years and feature guaranteed price floors.

Enterprise commitments leave small factory capacity for consumer products. Computer hardware manufacturers face reduced allocations for system RAM, solid-state drives, graphics cards, and consumer electronics. Gaming platforms, including the Sony PlayStation 5 and Microsoft Xbox Series hardware, face ongoing component cost increases.

Reporting from TechRadar and PCWorld indicates that consumers should expect high retail prices across laptops, desktop PCs, and smartphones through 2028. Price drops for individual RAM kits or pre-built systems are not expected in 2026 or 2027.

Industry research from Deloitte shows that the big three memory manufacturers, Samsung, SK Hynix, and Micron, will nearly quadruple their combined capital expenditure between 2024 and 2027.

Constructing and equipping modern semiconductor fabrication facilities takes years, delaying new chip supply.

Import tariffs in the United States add additional cost pressure onto the global supply chain. New duties on memory imports further reduce available consumer inventory. Buyers waiting for market relief will face elevated hardware prices for several more years.