Samsung Warns AI Chip Shortage Could Last Until 2028

The AI boom is creating a new reality for the semiconductor industry: demand is growing faster than manufacturers can build new capacity.

Samsung announced that shortages in the memory chip market—particularly high-bandwidth memory (HBM), the critical component powering AI accelerators—are expected to persist until at least 2028. Building advanced semiconductor fabrication plants takes years, meaning supply will remain tight even as investment pours into the sector.

To navigate the shortage, Samsung has signed multi-year supply agreements with major hyperscalers and AI infrastructure companies. Around two-thirds of its memory production is now covered by long-term contracts that include upfront commitments and pricing protections, giving both Samsung and its customers greater certainty in an increasingly competitive market.

The company is also benefiting from soaring demand for HBM chips used in AI servers, with sales to customers such as Nvidia and AMD helping drive record semiconductor profits. Samsung expects next-generation HBM4 revenue to triple in the current quarter as cloud providers continue expanding AI infrastructure.

Despite the strong chip business, Samsung noted that higher memory prices are squeezing other parts of its business, including smartphones, illustrating how the AI boom is reshaping the economics of the broader electronics industry.

Why it matters:
Samsung's outlook suggests the AI chip shortage is no longer a temporary supply-chain issue—it's becoming a structural challenge. As demand for AI computing continues to surge, companies that secure long-term chip supply will have a significant competitive advantage, while those relying on spot purchases may face higher costs and limited access to critical hardware.