Global Memory Shortage Could Last Until 2028 as AI Demand Drives DRAM Prices Higher

The global memory shortage is expected to continue for several years as demand from AI infrastructure and cloud providers keeps rising. Industry forecasts now suggest the market may not stabilize until around 2028, when supply and demand are projected to reach balance again.

DRAM demand surges due to AI infrastructure

According to reporting from TechPowerUp citing South Korean media outlet Chosun Biz, memory manufacturers expect shortages to persist as hyperscalers and AI companies continue expanding data-center infrastructure.

Samsung Electronics reportedly believes demand for DRAM technologies, including HBM, DDR, and other high-performance memory, will peak over the next several quarters before gradually stabilizing later in the decade.

The current surge largely stems from massive investments in AI computing clusters and large-scale cloud platforms. Major cloud providers have been placing DRAM orders months in advance to secure supply, increasing pressure on memory manufacturers.

Memory makers expand production capacity

In response to the strong demand, leading memory producers such as Samsung, SK Hynix, and Micron Technology have been investing heavily in new manufacturing equipment and capacity expansion.

Part of this effort involves purchasing advanced lithography systems from ASML, which are required to produce next-generation memory technologies like HBM, DDR, and GDDR.

ASML expects to deliver 56 Low-NA EUV scanners by 2027 based on current industry demand forecasts. Around seven of those systems are expected to go to Samsung, while as many as twenty could be delivered to SK Hynix.

SK Hynix reportedly plans to install twenty Low-NA EUV machines over the next two years, with a particular focus on high-bandwidth memory and advanced storage technologies used in AI systems.

Companies remain cautious about overexpansion

Despite the strong demand for AI hardware, memory manufacturers are being careful not to expand too aggressively.

Building new semiconductor fabrication plants takes several years, and overexpansion could lead to excess production capacity if demand slows later in the decade.

For this reason, companies are expected to continue with their current expansion projects but avoid launching large new initiatives that could flood the market once demand stabilizes.

The benefits of ongoing investments will likely only appear after new production lines and fabs become fully operational in the coming years.

Shortage could affect consumer hardware prices

The ongoing shortage is also expected to impact consumer electronics markets. Limited memory supply could push laptop prices higher as manufacturers struggle to secure sufficient components.

Some reports suggest laptop prices could increase by as much as 40 percent if shortages persist, reflecting the broader strain on hardware supply chains.

Certain companies have already started adjusting prices. Framework, for example, recently raised prices for DDR5 memory modules, highlighting how supply pressures are beginning to affect the consumer market.