The shortage of RAM modules, caused by the rapid development of artificial intelligence, will not only persist in 2027 but is also likely to become even more severe. Samsung management stated this during the release of their second-quarter financial results.
According to the company, which produces about a third of all memory chips globally, the strained supply situation will continue until at least 2028. Major AI developers are already providing Samsung with long-term demand forecasts in advance to secure future memory supplies.
Such demand allows the South Korean giant to prioritize customers willing to enter into multi-year contracts. Samsung believes this will help expand production more efficiently and avoid the traditional cycles of sharp demand increases followed by declines in the memory market.
However, the AI boom has already led to a significant increase in chip prices. For Samsung, this has been a double-edged sword: the semiconductor division set a revenue record in the second quarter, but the profitability of its smartphone and TV businesses declined due to increased component costs.
The company has already passed on some of the additional costs to consumers by raising prices for its Galaxy series smartphones and tablets. As a result, demand for these devices has begun to decline.