Silicon Motion's CEO has warned that memory and SSD shortages will persist until 2028. The company's chief, Chia-Chang Gou, stated that the situation is very serious and prices will continue to rise.
AI firms lock up supply with long-term contracts
AI companies are locking up supply through long-term contracts, exacerbating the shortage. DRAM and NAND manufacturers currently meet only 60-70% of total demand. New fabrication plants are not expected to begin mass production until late 2027 or early 2028.
Memory and SSD prices are expected to keep rising through the second half of 2025. Samsung also expects memory shortages to worsen in 2027.
The forecast comes from Silicon Motion, a major supplier of NAND controllers and SSD controllers. The company's CEO made the remarks in an interview with Economic Daily Korea.
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