Jonathan Feist / Android Authority
Key Points
- Samsung officials predict the RAM shortage will persist until 2028.
- Unmet demand from this year is expected to extend into 2027, tightening RAM availability.
- The semiconductor sector of Samsung recently earned nearly $62 billion, bolstered by rising memory demand.
The demand for RAM is skyrocketing, primarily driven by the needs of AI firms, causing significant shortages in the tech sector. This has resulted in price increases for a variety of devices, ranging from smartphones to handheld gaming consoles. Unfortunately, Samsung’s recent remarks suggest that the RAM situation is unlikely to improve soon.
During a recent earnings call, Samsung executives revealed their expectation that the RAM shortage will extend through 2028. The company is experiencing heightened demand, and the shortfall from 2026 is anticipated to carry over into 2027, which will further limit supply for new products being launched that year as they work to fulfill existing orders.
It has been reported that Samsung aims to boost its memory production by nearly 15% to satisfy the needs of major clients, like Apple. However, during the earnings call, company leaders noted that the time required to move from fabricating chips to actual production often exceeds three years. They stated:
Any substantial expansion in supply capacity will necessitate significant time. Hence, we believe a notable increase in available supply through 2028 is improbable.
As one of the top three RAM manufacturers globally, Samsung’s outlook on supply issues is critical. Along with SK Hynix and Micron, they supply approximately 75% of the world’s RAM. Therefore, their warning about the ongoing shortage could lead to additional price increases for future smartphones and electronics.
It’s important to acknowledge that Samsung’s mobile division recorded a loss for the first time in its quarterly results, attributing this to “heightened costs of components across the industry.” Conversely, their semiconductor division reported an operating profit of about 89.2 trillion won (around $61.7 billion).
Samsung did not provide any further forecasts, citing limited visibility beyond 2029. It’s hoped that by that time, the surge in AI demand for RAM will have stabilized, allowing for a return to more manageable prices and availability of RAM.
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