Samsung warned that the global memory chip shortage will worsen in 2027 and last until 2028. The AI boom is driving this crunch as companies prioritize high-speed chips. Executive Jaejune Kim said, "making these larger, highly complex AI chips naturally puts a physical limit on the supply of standard consumer memory chips."
Samsung warns that the global memory chip shortage will get worse in 2027 and last until 2028. With AI taking up supply, expect to pay a lot more for your next smartphone or laptop.
If you are waiting to upgrade your smartphone or buy a new laptop, you might want to reconsider your timeline. Samsung, one of the world's biggest memory chip makers, has issued a stark warning: a major global memory chip shortage is expected to hit hard in 2027 and will likely drag on into 2028. For the everyday buyer, this simply means that your next gadget could come with a significantly heavier price tag.
The AI boom is eating your phone's memory
The massive growth of Artificial Intelligence (AI) is the main reason behind this upcoming crunch. To run heavy AI tasks and power smart servers, tech companies desperately need specialised, high-speed chips known as High Bandwidth Memory (HBM).
Because the demand for AI is skyrocketing, Samsung is shifting its factory floors to produce more of these advanced AI chips. As a result, the production of regular memory chips, the ones that go into your everyday Android phones and budget laptops is dropping fast. Samsung's top executive, Jaejune Kim, explained that making these larger, highly complex AI chips naturally puts a physical limit on the supply of standard consumer memory chips.
Sold out till 2027
The panic among tech companies to secure AI hardware is unprecedented. During its financial earnings call for the third quarter of 2026, Samsung revealed that its entire stock of advanced HBM4 chips planned for the whole of 2027 is already completely sold out.
To make matters worse for the consumer electronics market, the company has secured long-term contracts with ten massive clients, locking up between 60 to 70 per cent of its total manufacturing capacity.
Customers from the mobile and automotive sectors are now rushing to sign deals before supplies run dry. To keep up with this incredible rush, Samsung says it will begin mass-producing its next-generation HBM4E chips by the first half of next year.
A historic payday for Samsung
While everyday consumers might end up paying a premium, Samsung is having a dream run. The tech giant posted a record-breaking revenue of 195.3 trillion (around $146.3 billion) for the quarter, which is a massive 127 per cent jump compared to the previous year.
Driven by this booming memory demand, Samsung also became the first global tech company to cross the historic 100 trillion mark in operating profits. The company is pouring this money straight back into the business, investing 14.4 trillion in research and development to build new production houses and secure next-generation technology.
What this means for everyday buyers
The message from the tech industry is clear: AI is monopolising the global memory supply. With regular chip availability staying extremely tight until 2028, gadget makers will have to spend a lot more money to secure basic components.
Ultimately, these extra manufacturing costs will be passed down to you. So, if you are looking to buy consumer electronics in the coming years, be prepared to loosen your purse strings.