Samsung expects memory shortage to worsen through 2027 and last until 2028
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- Samsung warned in its Q2 earnings call that the RAM chip shortage will intensify through 2027 and last until at least 2028, noting that frontier AI labs have been sharing medium- to long-term demand forecasts directly with the company to secure future supply.
- Samsung, which manufactures roughly a third of the world's memory chips, is now prioritizing customers willing to sign long-term contracts, giving it multi-year visibility to install equipment and ramp production without fearing the memory industry's historical boom-and-bust cycles.
- Samsung's semiconductor unit hit an all-time high in Q2 sales, but profitability at its smartphone and TV divisions shrank as higher chip costs flowed through to component expenses.
- Samsung raised Galaxy smartphone and tablet prices to pass on those costs, and demand for the devices dropped as a result.
- Apple raised prices on MacBooks, Macs, and iPads last month and warned on its latest earnings call that Q3 revenue growth will slow to 9-11% year-over-year, down from its recent 16% pace.
- Nvidia is expected to raise consumer graphics card prices by 20% to 30%, potentially pushing up costs for gaming devices, desktop computers, consoles, and laptops as memory manufacturers shift production capacity toward AI data centers.
Why it matters: Memory makers are reallocating capacity toward AI data centers, and the bill is landing on consumers: Samsung and Apple have already raised device prices, and Apple is projecting Q3 revenue growth of just 9-11% versus its recent 16%. With tight supply expected to last until at least 2028, the consumer-electronics squeeze has a multi-year runway.
