Global memory markets face a prolonged squeeze until at least 2028, driven by artificial intelligence demand and constrained manufacturing capacity, impacting consumer prices and supply.
The global memory squeeze that has already raised costs across the PC and gaming market now appears likely to last well into 2028, with supply at the industry’s biggest manufacturers effectively booked out. Reporting from DigiTimes and comments cited by Reuters suggest that Samsung, SK Hynix and Micron have already committed much of their DRAM and high-bandwidth memory output for the next two years, leaving little room for fresh orders. Samsung has also warned that the imbalance between supply and demand could worsen in 2027 and remain tight into 2028.
The shortage is being driven largely by artificial intelligence demand. Data-centre operators are buying vast quantities of memory for AI systems, and the build-out of those facilities has absorbed manufacturing capacity that would otherwise serve consumer products. According to TechRadar, Samsung said in its latest earnings report that the pressure is being reinforced by the slow, capital-heavy process of expanding semiconductor fabs, which cannot be brought on line quickly enough to relieve the market.
For consumers, the consequences are already visible. TechRadar reported that Samsung’s profitability has climbed sharply as DRAM and NAND prices rise, even as Gartner expects PC prices to increase and shipments to fall. Micron has also shifted further towards enterprise and AI customers, leaving the consumer side of the market with less supply and, in practical terms, less pricing power. In other words, higher memory costs are unlikely to disappear soon for anyone buying a console, a pre-built desktop or parts for a self-built machine.
Senior industry figures have also been unusually direct about the outlook. SK Hynix chief executive Kwak Noh-jung told Reuters that 2027 could be the worst year yet for the industry from a supply standpoint, and that demand may remain above capacity beyond 2030. TechSpot reported similar remarks from the company’s DRAM marketing leadership, which said the market for DRAM, NAND and HBM remains extremely tight. There are signs of broader competition, with Chinese maker CXMT gaining share, according to PC Gamer, but analysts say that will not be enough to unwind the shortage quickly. For now, the memory market remains constrained by AI-led demand, limited fabrication capacity and long lead times that leave buyers waiting years rather than months.
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