Samsung warns the AI revolution could keep memory in short supply until 2028

The global memory-chip shortage is set to deepen through 2027 and could persist into 2028, Samsung has warned, exposing a new constraint on the artificial intelligence boom that is already feeding through into higher prices for consumer electronics.

Samsung, which accounts for roughly a third of global memory-chip production, said demand for high-bandwidth memory used in AI data centres was absorbing manufacturing capacity at a pace that leaves little room for conventional chips used in smartphones, laptops and games consoles.

Jaejune Kim, Samsung’s head of memory sales and marketing, said the company did not expect a “significant increase” in incremental supply through 2028. Unmet demand from 2026 was likely to spill into subsequent years, creating increasingly tight conditions, he said.

The warning represents a significant escalation for an industry already grappling with what has become known as “RAMaggedon”. The AI infrastructure boom is creating enormous demand for advanced memory as technology companies build increasingly powerful data centres to train and run large AI models.

The supply squeeze is now reaching consumers. Samsung has increased prices on some of its latest Galaxy devices, while Apple raised prices for several MacBook and iPad models last month. The possibility of higher prices for forthcoming iPhones adds another layer of uncertainty for consumers.

The gaming industry has also been hit. Prices for the PlayStation 5, Xbox Series X/S and Nintendo Switch 2 have risen, with the standard disc-drive PS5 now priced at £569.99 in the UK, compared with £449 when it launched in 2020.

Memory inflation has been particularly dramatic. Morgan Stanley estimates that the price of a gigabyte of RAM has risen from $2.80 in 2025 to about $12 in 2026, an increase of more than four times.

For Samsung, however, the squeeze is proving lucrative. Its semiconductor division recorded record sales in the second quarter, helping offset weaker profitability in smartphones and televisions as rising component costs pressure consumer businesses.

The central problem is that adding capacity takes years, while AI demand is expanding far faster than manufacturers can respond.

Kim said visibility beyond 2029 was limited, leaving the industry facing an uncomfortable question: how long can AI’s extraordinary demand for memory continue to crowd out the rest of the technology market?