Memory buyers should brace for tighter supply and higher costs as Samsung forecasts that DRAM shortages will worsen in 2027. The South Korean chipmaker warns that supply conditions will not normalize until at least 2028, creating a multi-year constraint for hardware manufacturers. This timeline directly impacts the availability of memory modules for both consumer PCs and enterprise servers.
Samsung allocates majority of production to AI contracts, delaying relief
Kim Jae-jun, vice president of Samsung's Memory Business Division, delivered the forecast at a conference in Seoul. He stated that the company judges a low possibility of new supply increasing before 2028. The executive emphasized that the supply shortage is expected to worsen in 2027 before any meaningful relief arrives.
Samsung has allocated 60 to 70 percent of its production capacity to long-term contracts with data center operators and AI research labs. This massive diversion of capacity explains why consumer and standard enterprise supply remains constrained. The company has secured these deals to meet the surging demand from artificial intelligence infrastructure projects.
The financial impact of this AI-driven demand is evident in Samsung's recent performance. The company reported that its semiconductor operating profit increased approximately 19 times compared to the previous year. SK Hynix has issued similar warnings, confirming that the industry-wide tightness is expected to last until 2028.
We have been tracking DRAM closely and see our earlier coverage on DRAM Shortage May Last Until 2030 for additional context. Samsung's forecast confirms that the memory market will remain seller-favored for the next two years. Buyers should expect limited inventory and premium pricing throughout 2027.
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