Samsung and SK Hynix warn AI-driven memory shortages could last through 2027

Samsung and SK Hynix, two of the world's three largest memory suppliers, have warned that severe shortages of high-bandwidth memory could persist through at least 2027 as demand from artificial intelligence data centers overwhelms production capacity. Samsung memory chief Kim Jaejune said during an earnings call that "significant shortages" across memory products are expected to continue through at least 2027, with demand fulfillment rates falling to record lows as customers rush to secure future supply. He stated that based solely on demand currently received for 2027, the supply-to-demand gap is set to widen even further than in 2026. The shortages are being driven largely by the need for HBM, a vertically stacked form of DRAM designed to deliver extremely high bandwidth for AI accelerators. HBM is difficult and expensive to manufacture, requiring advanced die stacking and precision bonding. Because manufacturers are reallocating capacity toward high-margin AI memory products, supply for conventional DRAM used in servers, PCs, and mobile devices is also tightening. Samsung reported that some customers have already secured supply allocations through 2027. SK Group chairman Chey Tae-won suggested earlier this year that AI-related memory demand pressure may persist even toward 2030. The memory crunch is delivering record profits. Samsung's semiconductor division posted 53.7 trillion won in operating profit during the first quarter of 2026, accounting for roughly 94 percent of the company's total quarterly profit. SK Hynix reported record quarterly revenue of 52.6 trillion won and operating profit of 37.6 trillion won, fueled largely by booming HBM sales. Both companies are aggressively expanding production capacity. Samsung invested 465.4 billion won in its Xi'an memory chip plant in 2025, a 67.5 percent year-over-year increase. SK Hynix invested 581.1 billion won into its Wuxi facilities and 440.6 billion won into its Dalian operations. However, fabrication plants and advanced packaging facilities take years to expand, meaning supply growth cannot catch up to the pace of AI-driven demand.