Samsung predicts memory chip shortage through 2028

Samsung Electronics has warned that a global shortage of memory chips, driven by intense demand from artificial intelligence infrastructure, is expected to worsen next year and persist through 2028. The forecast, delivered by company executives during a second-quarter earnings call on July 30, 2026, signals prolonged supply constraints that could affect everything from data centers to consumer electronics.

Jaejune Kim, executive vice president of Samsung's memory business, stated that unmet demand from this year will carry into the next, with supply conditions tightening further in 2027. He said the shortage is expected to continue into 2028, extending a warning the company first issued in April. To manage the imbalance, Samsung has secured its production pipeline by signing long-term supply agreements with the world's five largest data center operators and is close to finalizing deals with five more major customers.

These contracts, which will run for at least five years, are set to account for 60 to 70 percent of Samsung's future memory capacity. The agreements include upfront payments and floor pricing, providing the company with more predictable revenue as it invests heavily...