All 2027 memory chip capacity sold out amid AI-driven shortage

Samsung Electronics has warned that the global memory chip shortage will intensify in 2027 and persist through at least 2028, as artificial intelligence demand continues to outstrip production capacity. The warning, delivered during the company's second-quarter earnings call on July 30, came alongside record financial results and reports that all three major memory makers have already sold out their 2027 production capacity.

Record Profits Amid Deepening Scarcity

Samsung reported operating profit of 89.5 trillion won ($61.98 billion) for the April-to-June quarter, a 19-fold increase from 4.68 trillion won a year earlier, according to Reuters. The company's semiconductor division posted a more than 250-fold jump in profit, according to Bloomberg.bloomberg+2

"The supply constraints are expected to become even more severe in 2027 than 2026, reinforcing our view that the supply shortage will persist through 2028," a Samsung executive said on the earnings call, as reported by CNET. Samsung added that "unmet demand from this year is likely to carry over into the following year, contributing to tighter supply conditions going forward."cnet

TechCrunch reported that frontier AI labs have been "sharing their medium- to long-term demand forecasts" directly with Samsung to secure future supply. The five largest memory manufacturers — Samsung, SK Hynix ↗ 8.17%, Micron ↗ 7.62%, Kioxia, and SanDisk — generated more than $90 billion in combined free cash flow, a 92-fold year-over-year surge.techcrunch+2

2027 Capacity Already Claimed

As of early August, all three major memory makers have pre-allocated their entire 2027 DRAM and HBM production capacity, according to Digitimes and TechPowerUp. Customers are reportedly receiving just 60 to 70 percent of requested volumes. SK Hynix CEO Kwak Noh-jung told Reuters in July that 2027 would be "the worst year in the industry's history from the supply perspective," predicting demand would outstrip supply "even beyond 2030."tomshardware+4

Micron CEO Sanjay Mehrotra has offered a slightly less dire outlook, anticipating the shortage will last through 2027 but eventually ease in 2028.pcmag

Consumer Fallout

The shortage is already driving record prices for consumers. According to DRAMeXchange data reported by Seoul Economic Daily, the average fixed transaction price of PC DRAM (DDR4 8Gb) reached $24 in July, up 14.3 percent from the previous month and more than eightfold from when tracking began in 2016. NAND prices rose to $30.1, marking 19 consecutive months of increases.sedaily

TrendForce expects third-quarter laptop shipments to fall 10.6 percent from the previous quarter as manufacturers pass rising component costs to consumers. Apple ↗ 1.96% raised MacBook prices by $100 to $300 in June, illustrating the downstream impact of what some in the industry have dubbed "RAMageddon."cnet+1