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Samsung expects memory shortage to worsen through 2027 and last until 2028
Samsung forecasts a worsening RAM chip shortage extending through 2027 and lasting until at least 2028, driven by high demand from AI labs. While Samsung's chip sales hit records, profitability in its other divisions declines due to rising component costs, pushing consumer prices up and reducing demand for devices. Similar effects are seen at Apple, with increasing prices impacting gaming and computing devices.
Key points
- Samsung predicts a RAM chip shortage will intensify through 2027, affecting supply until 2028.
- High demand from AI labs has led Samsung to prioritize long-term contracts, ensuring consistent production.
- Despite record-high semiconductor sales, rising chip costs are hurting Samsung's smartphone and TV division profitability.
- Apple raised prices on its devices due to memory shortages and warned of slowed revenue growth.
- Nvidia plans to increase consumer graphics card prices by 20-30%, further exacerbating device price hikes.
Why it matters
- The ongoing RAM shortage is emblematic of broader supply chain issues impacting the tech industry, worsened by the growth in AI technology.
- Historical trends show the semiconductor market cycles through periods of boom and bust, with current demand shaped by shifts towards AI and data centers.
- Increased prices across tech devices can reflect a longer-term trend of inflation in the semiconductor industry, impacting consumer behavior and sales.
The anticipated RAM shortage, linked to AI demands, underscores significant challenges for both manufacturers and consumers, driving up device prices and transforming market dynamics across tech industries.