Samsung warns RAM shortage to last until 2028, driving up consumer tech prices
A severe global RAM shortage is expected to persist until 2028 as manufacturers prioritize AI data centers, forcing higher prices for smartphones, laptops and other consumer electronics.
Samsung warned on its second-quarter earnings call that a severe global RAM shortage will intensify through 2027 and persist until at least 2028. The Korean manufacturer, which produces roughly a third of the world's memory chips, cited insatiable demand from the artificial intelligence sector as the primary driver.
Frontier AI labs, desperate to secure access to critical memory infrastructure, are bypassing standard procurement channels. These labs have been "sharing their medium- to long-term demand forecasts" directly with Samsung to guarantee their future supply.
This dynamic fundamentally alters how Samsung allocates its production capacity. The company can now prioritize customers willing to commit to multi-year contracts. This extended visibility allows Samsung to invest in new equipment and ramp up manufacturing without the fear of a sudden demand collapse, potentially ending the memory industry's historical boom-and-bust cycles.
For the broader market, the shift in capacity away from consumer electronics and toward AI data centers is creating significant friction. The resulting scarcity has driven up chip prices, acting as a double-edged sword for Samsung's own balance sheet. While its semiconductor unit achieved record-breaking sales in the second quarter, profitability in its smartphone and television divisions shrank as component costs surged.
Manufacturers are increasingly passing these higher costs onto consumers. Samsung raised the prices of its Galaxy smartphones and tablets, a move that immediately triggered a drop in demand. The shortage, informally dubbed "the RAMaggedon," has also forced Apple to increase prices on its MacBooks, Macs, and iPads.
The pricing pressure is expected to cascade further into the consumer technology market. Nvidia is anticipated to raise its consumer graphics card prices by 20% to 30%, a move that will inevitably increase the cost of gaming devices, desktop computers, consoles, and laptops. Apple has already signaled that consumers are feeling the strain, warning that its revenue growth will decelerate to between 9% and 11% in the coming quarter, down from a recent 16% pace.
