Samsung expects RAM shortage to continue in 2027 and beyond

Samsung says its production capacity still cannot meet customers' demand.

The shortage of RAM and the resulting increase in the prices of electronic products have become major concerns for both manufacturers and customers. While it was previously believed that the shortage could be mitigated by 2026 or early 2027, manufacturers now signal that it may persist for several more years.

Samsung, one of the leading manufacturers of RAM and memory chips, expects the shortage to continue into 2027 and beyond due to high demand from AI companies. These massive orders not only exacerbate the shortage but also drive up the prices of available memory chips. Recent disruptions in the supply chain have also caused Samsung to delay the production of its 7th-generation 10nm DRAM, D1d.

Kim Jaejune, a Samsung memory chip executive, told analysts that the company’s supply still falls far short of customer demand. He added, “Based solely on the demand currently received for 2027, the supply-to-demand gap for 2027 is set to widen even further than in 2026.”

Samsung, SK Hynix, and Micron are the world’s largest producers of RAM and memory, and they have been planning to ramp up production to meet the growing demand from both AI firms and electronics manufacturers. Meanwhile, Nikkei Asia reports that even with expanded production capacity, increased DRAM output is expected to meet only about 60% of demand. Some analysts also predict that the shortage could persist until 2030.

At the same time, with data centers’ insatiable appetite for more chips and tens of billions of dollars being invested in building new facilities worldwide, there is currently no clear outlook for resolving the RAM shortage. As a result, you should expect the price of smartphones and computers to go up every year.

Despite this, RAM manufacturers are setting new revenue records each quarter, driven by rising prices and the massive volume of orders from AI companies. Samsung, for example, reported in its latest earnings call that its chip division’s operating profit reached 53.7 trillion won ($36.15 billion) in the first quarter of the year.

Via: Reuters