Samsung Forecasts Global Memory Shortage to Worsen in 2027 and Last Until 2028

Samsung Electronics expects the ongoing global memory chip shortage to intensify in 2027 and extend until at least 2028. Driven by overwhelming demand from artificial intelligence data centers, chip manufacturers are shifting production capacity away from consumer electronics, leading to increased component costs and higher prices for devices like smartphones, laptops, and tablets.

What Happened

According to Samsung, which produces approximately one-third of the global memory chip supply, frontier AI laboratories are directly providing medium- and long-term demand projections to secure necessary memory infrastructure. This intense demand allows Samsung to focus on clients willing to sign multi-year contracts. This long-term visibility enables the semiconductor manufacturer to set up equipment and expand manufacturing capacity while mitigating the memory industry’s historical boom-and-bust supply cycles.

However, the AI-driven surge in memory demand has increased chip prices significantly. While Samsung’s semiconductor division recorded an all-time high in sales during the second quarter, profitability in its smartphone and television sectors shrank due to elevated component expenses. In response, Samsung raised prices on its Galaxy tablets and smartphones, which ultimately led to a decrease in consumer demand for those products.

Key Highlights

• Samsung projects tight RAM chip supply conditions will persist through next year, intensify in 2027, and continue until at least 2028.
• Samsung manufactures roughly one-third of the world’s memory chips and is prioritizing customers offering long-term contracts.
• AI laboratories are providing long-term demand forecasts directly to memory suppliers to reserve future infrastructure.
• Rising component costs reduced profitability in Samsung’s mobile and television units, leading to price hikes on Galaxy devices and a subsequent drop in demand.
• Apple raised prices on MacBooks, Macs, and iPads, projecting a drop in upcoming revenue growth to between 9% and 11% year-over-year.
• Nvidia is expected to increase consumer graphics card prices by 20% to 30%, impacting laptops, gaming setups, consoles, and desktop computers.

Why This Matters

The allocation of memory production capacity toward AI data centers directly impacts consumer electronics markets. Elevated chip costs are affecting major hardware brands. Apple previously raised prices across its Mac and iPad lines and forecasted slower revenue growth. Meanwhile, projected price increases of 20% to 30% for Nvidia graphics cards are expected to raise costs across gaming hardware, desktop computers, and laptops.

What to Watch Next

Consumers and industry observers can expect higher hardware prices as manufacturers continue passing increased memory chip costs down the supply chain. Market performance will depend on how sustained long-term commitments from AI laboratories balance against reduced consumer hardware sales.

Frequently Asked Questions

How long is the memory chip shortage expected to last?

Samsung estimates that tight supply conditions will persist through next year, worsen in 2027, and last until at least 2028.

Why are consumer electronics prices rising?

Memory manufacturers are reallocating production capacity toward AI data centers. The resulting RAM shortage has driven up chip prices, forcing companies like Samsung and Apple to increase prices on phones, tablets, and computers.

How is Samsung managing the surge in demand?

Samsung is prioritizing customers who commit to long-term supply agreements, giving the company multi-year demand visibility to scale production without risking sudden market downturns.

Source: TechCrunch