Samsung Warns Global Memory Chip Shortage Will Worsen Through 2028

The global race to build artificial intelligence infrastructure is creating an unprecedented squeeze on memory chip supplies, and Samsung says the situation is expected to become even more severe. During its latest earnings briefing, the world’s largest memory chip manufacturer warned that supply constraints will intensify in 2027 and are likely to continue through at least 2028 as demand for AI hardware continues to surge.

At the heart of the shortage is the explosive demand for High Bandwidth Memory (HBM) and advanced DRAM chips, which are essential for powering AI accelerators used in large-scale data centers. Tech giants such as cloud providers and AI developers are expanding their infrastructure at a record pace, consuming more memory chips than manufacturers can currently produce. Samsung said many customers are now seeking direct, long-term supply agreements to guarantee future deliveries, reflecting growing concerns about availability.

To manage the imbalance, Samsung has signed multi-year contracts with several of the world’s largest data center operators. These agreements reportedly include upfront payments and minimum pricing commitments, allowing Samsung to lock in a significant portion of its production years in advance. The company expects these long-term partnerships to provide stability for both suppliers and customers while reducing the risk of future supply disruptions.

The shortage is already affecting the broader technology industry. As manufacturers prioritize high-margin AI memory products, fewer chips are available for PCs, smartphones, automotive systems, and other consumer electronics. Analysts expect memory prices to remain elevated, increasing production costs across multiple industries. Samsung, however, believes the AI boom will continue to support strong revenue growth, with demand for its next-generation HBM4 memory expected to accelerate further over the coming quarters.