Samsung, which produces approximately one-third of the world's memory chips, has stated that the ongoing shortage of RAM chips is expected to intensify in 2027 and last until at least 2028. This forecast was shared during the company's Q2 earnings call.
The high demand for memory infrastructure from frontier AI labs has led them to share their medium- to long-term demand forecasts directly with Samsung. This allows Samsung to prioritise customers willing to sign long-term contracts, providing multi-year visibility for production scaling.
The AI-driven memory shortage has resulted in increased chip prices, impacting Samsung's smartphone and TV divisions due to higher component costs. Samsung has passed some of these costs onto consumers by raising prices for its Galaxy smartphones and tablets, which has subsequently led to a drop in demand for these devices.
Apple, a competitor, also increased prices for its Macbooks, Macs, and iPads last month due to the memory shortage. Apple has projected a slowdown in revenue growth for the upcoming quarter, expecting between 9% and 11% year-over-year, down from a recent 16% quarterly growth rate.
Memory manufacturers are reportedly shifting production capacity towards AI data centres and away from consumer electronics. Nvidia is also expected to raise its consumer graphics card prices by 20% to 30%, which may further increase prices for gaming devices, desktop computers, consoles, and laptops.