Samsung projects a worsening memory chip shortage through 2027 that will persist into 2028, driven by surging demand from AI data centers. The supply crunch is already pushing component costs and consumer device prices higher.
Samsung Electronics has signaled a prolonged memory chip shortage extending into 2028, as artificial intelligence infrastructure continues to strain global semiconductor supply.
The South Korean manufacturer expects conditions to deteriorate through 2027 before stabilizing in 2028. The shortage stems from explosive demand for memory chips in data centers building out AI capabilities, outpacing current production capacity.
Memory chips—primarily DRAM and NAND flash—are critical components in servers, storage systems, and AI infrastructure. Data centers worldwide are rapidly expanding to support large language models and machine learning workloads, creating unprecedented demand.
The supply crunch has immediate market consequences. Component costs have already risen, with prices for memory chips climbing significantly. These increased expenses are flowing downstream to consumers, driving up retail prices for devices including laptops, smartphones, and storage solutions.
Samsung, a major producer of both DRAM and NAND flash memory, is among the first manufacturers to publicly project such an extended shortage. The company's forecast reflects broader industry constraints: expanding fabrication capacity takes years and requires massive capital investment.
Other chipmakers face similar pressures. SK Hynix and Micron Technology, two other dominant memory producers, are also working to increase output, but supply expansion timelines typically extend beyond 2028.
The shortage underscores the infrastructure challenge posed by AI adoption. While chip designers race to develop new processors, the fundamental components that support data center operations remain bottlenecked. Memory shortages can constrain server deployments and delay AI infrastructure buildouts, even when logic chips are available.
Industry observers expect memory prices to remain elevated through the forecast period. Companies requiring bulk memory—cloud providers, enterprise data centers, and device manufacturers—face sustained procurement challenges and higher costs.
Samsung's warning provides a rare specific timeline from a major player, signaling that industry executives expect AI-driven demand to maintain pressure on memory supplies for years ahead.
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