Samsung is warning that the global memory crunch is not easing anytime soon, and the pressure may become even sharper next year. The company says the surge in demand for AI chips is keeping supply tight across the broader memory market, creating a risk that everyday devices will continue to get more expensive.
That strain is no longer limited to data centers and AI servers. As production capacity shifts toward advanced chips for AI accelerators, the supply of memory used in smartphones, PCs, and other consumer devices is being squeezed as well.
AI demand is reshaping memory production
The rapid expansion of AI data centers has become the main force redirecting chip manufacturing. Samsung and other makers are channeling a large share of capacity into advanced memory chips designed for AI accelerators, leaving less room for conventional memory products.
That shift has tightened supply for smartphones, PCs, and other devices even as demand stays strong. The result is a market where supply has not caught up with customer needs, and Samsung says the imbalance remains unresolved.
Kim Jaejune, an executive in Samsung’s memory business, said the market still shows no meaningful improvement. According to Reuters, he said Samsung’s supply is still far below customer demand.
The gap may widen further
Samsung’s outlook suggests the pressure could intensify rather than fade. For demand already received for 2027, the company sees the gap between supply and demand becoming even wider than in 2026.
That signals a continued tight market for conventional memory. As more production capacity is diverted to AI-related chips, memory prices for smartphones, PCs, and other devices are likely to remain on an upward path.
For consumers, that matters because memory is a core component in many gadgets. When a key part becomes harder to source and more expensive, electronics makers face higher cost pressure across their product lines.
Samsung is also benefiting from AI spending
The same market conditions that are constraining supply are also helping Samsung’s chip business post stronger results. The company reported record operating profit from its chip division of 53.7 trillion won in Q1 2026, up sharply from 1.1 trillion won in the same period a year earlier.
Overall revenue for that period also jumped 69% to 133.9 trillion won. The numbers highlight how strongly AI-related demand is lifting Samsung’s semiconductor business, even as the broader memory market remains tight.
To secure supply, Samsung said it has signed multi-year binding contracts with several customers that want to lock in memory shipments. The company did not disclose the customers’ names or the length of the agreements.
Other risks still remain
Beyond supply constraints, Samsung is watching other operational risks. The company said the conflict in the Middle East has not disrupted chip production because supply has already been secured and gas sourcing for manufacturing has been diversified.
Still, Samsung is monitoring the possibility of higher transportation costs if oil prices rise. It also said it will work with the South Korean government to keep electricity supply stable.
Taken together, the situation shows that the memory crunch is now shaped by more than just factory output. Logistics, energy stability, and the broader AI buildout are all influencing how quickly supply can recover, while consumer devices continue to face pressure from a market that remains tight.