A persistent global shortage of memory chips is anticipated to extend well into the next year and potentially beyond, as analysts caution that the growth in supply is lagging behind the surging demand. This imbalance has already led to widespread price hikes in various consumer electronics.
As reported by Nikkei Asia, to meet the current demand, production would need to increase by 12% annually until the end of 2027. However, the industry is currently experiencing growth of only 7.5%. The supply-demand gap stands at approximately 40%, primarily fueled by the escalating demand in AI-related sectors, along with increased costs of electricity and materials due to uncertainties in the Middle East.
The impact of this shortage is evident in the consumer market. Microsoft has justified price hikes of up to $500 on its Surface product line, citing rising memory and component costs. Meta has also raised prices by up to $100 on its Quest 3 virtual reality headset due to the same supply shortage. Raspberry Pi products have witnessed price increases of up to $150 in recent weeks.
South Korea holds a dominant position in global RAM production, with Samsung being the largest RAM manufacturer worldwide. While Samsung has a significant project underway at its Pyeongtaek manufacturing complex, full-scale mass production of memory from that facility is not projected until next year. Moreover, the company is entangled in a legal dispute with labor organizers at the site, with the union condemning Samsung’s actions as a provocation.
Looking ahead, the timeline for AI hardware customers appears more protracted. Samsung anticipates commencing the rollout of high-bandwidth memory DRAM, a specialized product for advanced AI processors, from the Pyeongtaek complex no earlier than 2028. Meanwhile, SK Hynix’s facility in Cheongju is foreseen as the primary source of high-bandwidth memory throughout the remainder of 2026.
According to Counterpoint Research analyst MS Hwang, as cited by Nikkei Asia, the normalization of supply and demand in the memory market is not expected until 2028.
