The AI boom is worsening a global memory chip shortage, which Samsung predicts will continue into 2027
Samsung Electronics on Thursday reported record quarterly profit driven by a 49-fold jump in chip income, saying it expects a severe supply shortage to deepen next year as clients spend on AI, driving up prices of its memory chips.
A boom in the construction of AI datacentres has spurred Samsung and chipmaking peers to allocate production capacity to advanced chips that Nvidia uses in its so-called AI accelerators. Even so, chipmakers are struggling to meet demand while the move also squeezes the supply of conventional chips.
“Our supply falls far short of customer demand,” Kim Jaejune, a Samsung memory chip business executive, told analysts on its post-earnings call. “Based solely on the demand currently received for 2027, the supply-to-demand gap for 2027 is set to widen even further than in 2026.”
The world’s top memory chipmaker by sales, Samsung also said it has signed multi-year binding contracts with customers hoping to lock in supplies, without disclosing identities or terms.
