Samsung's Memory Crisis: Supply Crunch to 2029?

Samsung has reported a significant financial dichotomy, with its memory production business achieving stellar results while its mobile division experienced its first-ever loss. This downturn in the mobile sector is attributed to escalating operational costs.

Executives at Samsung anticipate the ongoing memory chip shortage to intensify, projecting more severe supply constraints in 2027 than in 2026. The company estimates that significant improvements in incremental supply are unlikely before 2028, with unmet demand from the current year expected to carry over.

This tight supply is further fueled by robust demand from AI data centers. The production cycle for memory technology is exceptionally long, with Samsung indicating it now exceeds three years, a factor that contributes to escalating component prices.

Samsung's outlook aligns with industry competitors, as SK Hynix also predicts a challenging supply landscape. Projections suggest that supply issues could persist for several more years, with visibility beyond 2029 remaining limited.

Simultaneously, Samsung's mobile division is grappling with increased component prices, prompting price hikes for some products. The company forecasts continued production cost increases through the latter half of 2026.

To navigate these challenges, Samsung is focusing on its existing product lines and has confirmed plans for upcoming devices, including a Galaxy Tab S12 tablet and a Galaxy S26 FE smartphone, both expected to launch in the near future. The company also plans to release new intelligent smart glasses before the end of 2026.