Memory Shortage Expected to Persist Through 2028, Executives Say

Memory manufacturers Micron and Samsung have indicated that the global memory shortage is likely to persist at least through 2028. Company leaders predict that demand for memory chips will exceed supply for several years, significantly impacting both enterprise and consumer markets.

Micron CEO Sanjay Mehrotra informed investors that demand for his company's memory products will outstrip its available supply in the coming years. While Micron no longer sells consumer RAM, Mehrotra's statements pertain to the company's business-to-business sales of high-bandwidth memory (HBM) for artificial intelligence applications and DRAM for servers.

The industry's prioritization of manufacturing capacity for AI and server memory directly limits the supply of memory produced for consumer devices. This situation stems from the rapid growth in AI development, which requires substantial memory quantities, compelling manufacturers to allocate resources primarily to these applications.

The ongoing shortage is expected to have broader implications across the electronics market, potentially leading to increased component prices and impacting the production timelines for consumer electronics such as smartphones and computers. Memory manufacturers are investing in expanding production capacity, but the construction of new facilities and production lines requires significant lead time.