Samsung, a leading manufacturer of memory and storage components, has forecast that the ongoing global chip shortage will intensify and persist until at least 2028. During a recent earnings call, the South Korean conglomerate indicated that supply will remain constrained while demand continues its upward trajectory.
These projections are reportedly informed by demand forecasts shared by AI companies seeking to secure a consistent supply of memory chips. Samsung, in turn, uses this data to prioritize customers, favoring those with higher profit margins and a willingness to commit to long-term contracts. This practice contributes to sustained high prices and guarantees future demand for manufacturers.
The significant portion of manufacturing capacity dedicated to High Bandwidth Memory (HBM) for AI data centers has left limited resources for consumer-grade memory. This scarcity has already led to price increases for various consumer electronics, including game consoles like the PlayStation 5, Xbox Series X/S, and the upcoming Switch 2. Valve's Steam Deck also launched at a higher price point than anticipated, with the company suggesting further price hikes may be necessary.
It is important to consider that Samsung directly benefits from the current shortage, creating a financial incentive to prolong the crisis. Furthermore, statements made during earnings calls are often framed to present a favorable financial outlook to investors. The three major memory manufacturers, Samsung, SK Hynix, and Micron, are currently facing a lawsuit in California accusing them of cartel-like behavior and artificially inflating prices.