AI Boom Keeps Memory Prices High as Global Shortage Expected to Last Until 2028

The global memory chip shortage continues to drive up the cost of consumer electronics, and industry leaders say relief is still years away. According to Samsung, the supply imbalance caused by surging AI infrastructure demand is expected to persist through 2028, keeping prices for PCs, laptops, smartphones, SSDs, and other hardware elevated.

The company warns that increasing demand from artificial intelligence data centers continues to outpace manufacturing capacity.

AI Infrastructure Is Fueling the Shortage

Samsung says the rapid expansion of AI services has dramatically increased demand for high-performance memory.

Modern AI data centers require enormous quantities of:

• DRAM (RAM)
• High-bandwidth memory (HBM)
• GPUs
• Enterprise storage

As AI companies continue building new infrastructure, memory suppliers are prioritizing enterprise customers over the consumer market, where profit margins are typically lower.

Existing Orders Are Carrying Into Next Year

Samsung expects unmet demand from 2026 to spill over into 2027.

Because memory manufacturers already have long-term supply agreements with major cloud providers and AI companies, much of their production capacity is effectively reserved years in advance.

As a result:

• Supply is expected to remain constrained throughout 2027.
• Market conditions may become even tighter next year.
• Consumer memory prices could remain high—or increase further.

Building More Factories Takes Years

Although manufacturers are investing heavily in new semiconductor facilities, expanding production is a slow process.

Constructing and bringing new fabrication plants online requires:

• Massive capital investment
• Advanced manufacturing equipment
• Highly specialized engineering
• Several years before full production begins

This means additional supply is unlikely to arrive quickly enough to significantly ease shortages in the near future.

Other Manufacturers Share the Same Outlook

Samsung is not alone in its assessment.

Other memory manufacturers, including SK Hynix, Micron, and ADATA, have also indicated that supply conditions are expected to remain challenging through 2027 before gradually improving.

The industry broadly agrees that the current imbalance between supply and demand will not be resolved quickly.

Smaller Companies Face Growing Pressure

The prolonged shortage is also creating difficulties for smaller memory manufacturers.

RAM production requires enormous investment, precise planning, and long development cycles, making it difficult for new or smaller companies to compete against established industry leaders.

As market pressures continue, some smaller manufacturers could struggle to remain competitive.

Consumers May Continue Paying More

The ongoing memory shortage has already contributed to higher prices across a wide range of technology products, including:

• Laptops
• Desktop PCs
• Smartphones
• SSDs
• USB flash drives
• Routers

With enterprise demand showing little sign of slowing and new manufacturing capacity still years away, consumers are unlikely to see significant price relief before the latter part of the decade.