Samsung Warns the Memory Shortage Could Tighten Through 2027

Samsung expects the global memory shortage to intensify during 2027 and remain tight into at least 2028. The company produces roughly one-third of the world's memory chips, giving its forecast significant weight for computer, smartphone and data-center markets.

Frontier AI companies are providing multi-year demand projections and seeking long-term supply commitments, Samsung said during its second-quarter earnings call. That visibility allows memory manufacturers to expand capacity with less fear of the sharp demand reversals that historically defined the industry. It also lets suppliers prioritize customers prepared to commit early and pay more.

The economics are already splitting Samsung's business. Higher chip prices helped its semiconductor unit reach record sales, while rising input costs reduced profitability in smartphones and televisions. Samsung has increased prices on some Galaxy phones and tablets, and demand weakened after those increases.

Other manufacturers face the same pressure. Apple has raised prices on Macs and iPads and warned of significant constraints. Graphics cards, consoles and personal computers may also become more expensive if producers redirect capacity from consumer hardware toward the higher-margin memory used in AI accelerators and servers.

Long-term contracts may help suppliers finance new factories, but memory capacity cannot be added instantly. Fabrication equipment, clean rooms and qualification take years, and demand may shift among different types of chips. Producers will try to avoid overbuilding the wrong technology, which means high prices can persist even after companies announce billions of dollars in expansion.

Samsung's forecast gives buyers time to prepare, but it can also encourage stockpiling that makes the shortage worse. Device makers should distinguish necessary safety inventory from speculative purchasing and share realistic demand with suppliers. Enterprise customers may delay memory-heavy upgrades, while cloud providers could reserve the newest components for their highest-value AI workloads. The duration matters because a multi-year constraint can influence product design. Engineers may optimize software for smaller memory footprints and give repairable or expandable systems a new advantage after years of tightly integrated hardware.

A shortage lasting through 2028 would reshape product planning. Device makers may reduce base memory, delay launches or favor premium models that can absorb higher component costs. Consumers should expect fewer discounts and longer replacement cycles. The AI infrastructure boom is no longer isolated to cloud budgets. It is influencing the price and availability of everyday electronics.