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Tech Price Hikes: Chip Shortage to Endure Until 2028
31 Jul
Summary
- Memory chip shortage driven by AI demand will continue through 2028.
- Samsung expects supply constraints to worsen in 2027.
- High chip costs already impacting prices for Apple and Microsoft.
The global memory chip shortage, fueled by the rapid growth of artificial intelligence and the demand for AI servers, is expected to continue impacting tech prices until at least 2028. Samsung executives indicated on their second-quarter earnings call that unmet demand from the current year will likely carry over into the next, exacerbating already tight supply conditions.
Samsung's vice president of memory elaborated that the shortage is projected to become even more severe in 2027 compared to 2026, reinforcing the company's outlook that supply issues will persist through 2028. This increased demand for AI-powered computing and cloud capacity is driving up costs for manufacturers of devices such as laptops and smartphones.
Beyond the server market, the demand for AI is also contributing to mobile memory shortages and higher prices. Samsung anticipates that sales from its upcoming premium products, including the S26 series and new foldable devices, will help boost profits amid these challenging supply conditions. Other major technology firms have already begun to pass on increased costs to consumers.
