Samsung Warns Memory Chip Shortage Will Worsen Through 2027, Last Until 2028
Samsung expects the global RAM chip shortage to worsen through 2027 and last until 2028. According to a TechCrunch report, high demand from AI labs is driving up component costs, forcing manufacturers to prioritize long-term contracts and pass rising expenses onto consumer electronics buyers.
Samsung has warned that the global shortage of random-access memory chips will intensify in 2027 and is likely to persist until at least 2028. As a manufacturer responsible for roughly a third of the world supply, the South Korean tech giant highlighted that artificial intelligence infrastructure demands continue to strain production capacity.
As per a report by TechCrunch, Samsung revealed during its second-quarter earnings call that frontier artificial intelligence laboratories are sharing long-term demand forecasts directly with the company to secure future components. This intense demand allows the manufacturer to prioritize clients signing long-term contracts, helping stabilize production schedules and avoid historical market volatility. Xiaomi Price Hike: Smartphone Prices Increased in India Due to Memory Crisis; Check List of New Rates.
While Samsung's semiconductor division recorded all-time high sales in the second quarter, the rising cost of components created financial pressure elsewhere. Profitability within the company's smartphone and television divisions declined as expensive chips drove up manufacturing costs.
To mitigate these pressures, Samsung has begun passing expenses onto consumers by raising prices across its Galaxy smartphone and tablet ranges, which has subsequently reduced device demand. Competitors face similar challenges, with Apple recently increasing computer and tablet prices due to the broader market crunch.
The memory shortage, informally referred to as RAMaggedon, stems from manufacturers shifting production focus toward high-performance data centres and away from consumer electronics. This strategic pivot is expected to trigger price increases across various hardware segments. Nothing Phone 4a Price Hike in India From August 1
Industry analysts note that components such as consumer graphics cards could soon see price hikes of up to 30 percent. Consequently, buyers face a prolonged period of higher costs for desktop computers, laptops, gaming hardware, and mobile devices as supply constraints continue.
(The above story first appeared on LatestLY on Jul 31, 2026 09:41 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).