Samsung Electronics Co., Ltd. said the global memory-chip shortage will continue through 2028 [1].
The projection highlights a critical bottleneck in the global technology supply chain. As artificial intelligence and data centers expand, the demand for high-performance memory continues to outpace the industry's capacity to produce these components.
Despite the supply constraints, the South Korean conglomerate reported a record-high operating profit for the second quarter of 2024 [2]. The company's operating profit increased by 1,300% compared with the prior period [4]. This surge was driven almost entirely by the memory-chip division, which contributed over 99% of the total operating profit [3].
Revenue from the memory-chip business specifically reached $49.64 billion for the quarter [2]. The company said it is now emphasizing long-term supply deals to manage the ongoing volatility of the market [1].
Samsung's financial performance reveals a stark contrast between its hardware divisions. While the chip business reached record heights, the company's smartphone business posted its first-ever loss during the same period [2]. This shift underscores the current market priority for infrastructure components over consumer electronics.
Industry analysts said that the reliance on a few key manufacturers for high-bandwidth memory creates a systemic risk for the tech sector. Samsung's warning that the crunch will persist for several more years suggests that the AI boom is placing a permanent strain on semiconductor manufacturing capabilities [1].
“The global memory-chip shortage will continue through 2028”
The disparity between Samsung's record chip profits and its smartphone losses indicates a fundamental shift in the tech economy. Capital is moving away from finished consumer devices and toward the foundational infrastructure required for AI. A projected shortage lasting until 2028 suggests that the hardware layer of the AI revolution remains the primary limiting factor for global technological scaling.
