Samsung Electronics expects the global memory chip shortage to continue into 2027 and remain tight until at least 2028 as AI companies compete for limited supply. The company said major AI developers are already sharing multi-year demand forecasts to secure access to memory infrastructure.
Samsung, which supplies roughly one-third of the world’s memory chips, discussed the outlook during its second-quarter 2026 earnings call. Its customers’ forecasts indicate that demand could intensify next year rather than ease.
AI Companies Seek Long-Term Supply
Frontier AI developers have been providing Samsung with medium- and long-term demand projections as they plan future data centre capacity. These forecasts allow Samsung to prioritise customers willing to enter long-term supply agreements.
The commitments also give Samsung more confidence when installing manufacturing equipment and increasing production. Memory manufacturers have historically faced cycles in which heavy investment creates excess supply after demand falls.
Longer contracts could reduce that risk by giving Samsung greater visibility into future orders. The company can expand production while knowing that customers have committed to buying the additional output.
Higher Chip Prices Lift Samsung’s Semiconductor Sales
The shortage has pushed memory chip prices higher in recent months. Samsung’s semiconductor division recorded its highest quarterly sales during the second quarter, according to the company’s official earnings announcement.
However, the same price increases raised component costs for Samsung’s smartphone and television divisions. Profitability in both businesses declined even as the semiconductor operation benefited from stronger pricing.
Samsung has passed some of these costs to customers by raising prices for Galaxy smartphones and tablets. Demand for those devices has weakened following the increases.
Apple Warns of Slower Revenue Growth
Apple also increased prices for some Mac computers and iPads as memory costs rose. The shortage has informally been called “RAMageddon” as AI data centres consume a growing share of available memory production.
During its latest earnings call, Apple projected that revenue would grow between 9% and 11% year over year in the coming quarter. That would be slower than the 16% growth recorded during its latest quarter, according to Apple’s third-quarter results.
Memory manufacturers have been directing more production capacity toward AI data centres and away from consumer electronics. This has reduced the supply available for smartphones, computers, tablets and other consumer devices.
Nvidia is also expected to increase prices for consumer graphics cards by between 20% and 30%. Higher graphics card and memory costs could increase prices across gaming computers, consoles, laptops and desktop systems.
The shortage is expected to continue as AI infrastructure demand grows faster than manufacturers can add production. Samsung’s latest outlook suggests that tight conditions may remain in place for at least another two years.
Featured image credits: Flickr
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