Samsung Warns Global Memory Shortage Will Worsen Through 2027

During a quarterly earnings call, Samsung Electronics reported record first-quarter profits driven by AI demand but warned that the global memory and NAND shortage will worsen through 2027. The company stated that the supply-to-demand gap for high-bandwidth memory (HBM) chips used in AI data centers is widening, with 2027 expected to be more severe than 2026.

This shortage has already triggered price hikes for consumer electronics. Sony increased PlayStation 5 prices by up to $150, and Motorola mid-range phones have seen cost increases. The crisis also delayed the release of Valve's Steam Machine. Market analysts at IDC suggest that low-cost Android phones under $100 may become permanently unviable due to rising component costs. While Samsung projects its HBM revenue will more than triple in 2026, the diversion of resources to AI hardware continues to strain the general consumer RAM market.

Industry leaders offer varying timelines for recovery. Intel CEO Lip-Bu Tan suggests relief may not arrive until 2028, while SK Group Chairman Chey Tae-won indicates that expanded production capacity may not meet demand until 2030. Amidst these challenges, Samsung announced it is developing AI-powered smart glasses to provide immersive multimodal AI experiences, intended to expand its wearable lineup alongside Galaxy XR.