Nowadays, memory chips have entered the strongest super bull market in history. Prices continue to soar, and production capacity is very scarce. Smartphones, PCs and other industries are facing huge impacts.Local reports indicate that Samsung Electronics Semiconductors have begun to worry that the current boom caused by tight supply of memory chips may only last one to two years, after which the market may enter a downward cycle again.
It internally believes that the global memory chip market may turn around around 2028.
Therefore, on the one hand, Samsung hopes to seize the high-profit opportunities brought by AI, and on the other hand, it is also working hard to improve operational efficiency and avoid over-investment again.
SK Hynix has also previously stated that they will remain cautious in expanding production capacity.
It is reported that this memory shortage is not a short-term fluctuation, but a long-term structural gap caused by the generative AI technology revolution. The core contradiction is centered on high-end products and production capacity allocation.
At present, global AI demand is soaring. The DRAM and NAND requirements of a single AI server are 8-10 times that of ordinary servers. HBM (high-bandwidth memory) is the core standard of AI servers, and the supply and demand gap is as high as 50%-60%.
The HBM market size is expected to grow by nearly 60% in 2026, accounting for nearly 40% of the DRAM market. HBM accounts for more than half of the total DRAM sales of Samsung and SK Hynix.
Samsung and other three major storage manufacturers have allocated more than 70% of their new and redeployable production capacity to HBM and advanced DRAM, leading to a tight supply of consumer-grade storage such as low-capacity NAND. The price of mainstream DDR4 8Gb chips has soared from a low of 3.2 US dollars in 2025 to 15 US dollars, an increase of 369%.
This round of surge in memory has caused the cost of terminal products such as mobile phones and computers to soar. Some manufacturers have been forced to increase prices or adjust configurations. Global smartphone shipments are expected to decline by 12.9% year-on-year due to cost pressures.