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Samsung Warns Memory Shortage Will Deepen in 2027 as It Locks Most Output

The company is shifting roughly 60–70% of production into multi‑year AI and data‑center deals with price floors, prolonging tight consumer supply until new fabs start output.

Overview

  • In its Q2 2026 earnings call Samsung told investors it expects DRAM and NAND supply to tighten further in 2027 and to show little incremental increase through 2028.
  • Samsung said it will allocate about 60 to 70% of total capacity to five‑year contracts with advance payments and minimum price floors, prioritizing high‑margin AI and data‑center customers.
  • The memory division recorded a large profit spike in Q2 2026 as prices rose and contracted sales insulated Samsung from price declines.
  • Other suppliers and analysts report similar shortages, with Micron’s capacity reportedly sold out through 2027 and downstream firms arranging multi‑year buys and stockpiles to secure chips.
  • Ramped capital spending by the big manufacturers will not ease consumer shortages quickly because new fabs and qualification take years, meaning higher prices and constrained PC, SSD, and GPU availability are likely into late 2027 and 2028.