Samsung Expects the Chip Shortage to Get Worse Before It Gets Better

Don’t expect lower prices on tech anytime soon.

That’s the takeaway from what Samsung execs said on the company’s second-quarter earnings call Thursday. The company expects the memory chip shortage behind rising tech prices to continue through 2028.

The RAM shortage, sometimes dubbed RAMageddon, is driven by high demand for memory (and low supply) driven by the rapid growth of AI and demand for the chips that power all those data centers. That means the chips for your devices like laptops and smartphones are costing manufacturers more.

Jaejune Kim, Samsung’s executive vice president of memory, broke down what the supply and demand in the memory market means for Samsung in the Q2 earnings call. Kim said that the rapid adoption of agentic AI has led to increased demand and use of AI servers and overall computing. And AI frontier model developers are struggling to get enough cloud capacity.

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