Samsung warns memory crunch will last through 2028 as profit rises 19-fold

Tech giant counts record piles of cash while buyers face years of elevated prices

Samsung Electronics is warning that the current memory supply crunch will deepen next year and persist through 2028, a shortage that keeps padding its own record profits at the expense of enterprise customers and consumers.

The Korean conglomerate said agentic AI has added to demand already generated by model training, driving an "unprecedented rise" in requirements for AI servers and other computing infrastructure.

Memory makers continue to prioritize production of components for AI servers, leading to a shortfall of the mainstream memory types needed for PCs, smartphones, and other devices.

The industry continues to invest in new capacity, but the lead time from starting construction of a fab to producing wafers exceeds three years, according to Samsung's EVP of Memory, Jaejune Kim, meaning that any significant ramp in supply capacity will take considerable time.

"So we...

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