Executives from major memory manufacturers predicted this week that a shortage of semiconductors will extend through 2028, driven by competing demands from artificial intelligence and data center applications.
Micron Chief Executive Sanjay Mehrotra stated that demand for the company’s memory products will outpace supply capacity over the coming years. While Micron no longer manufactures consumer-grade RAM, the company supplies high-bandwidth memory and DRAM to data centers and AI infrastructure. The executive noted that seventy-five percent of Micron’s 2027 memory output is already spoken for by existing customers, with most ongoing sales discussions focused on 2028 deliveries. Prices for memory contracted for 2027 are substantially higher than current 2026 pricing, according to Mehrotra’s statements to investors.
Mehrotra acknowledged that Micron plans to bring new manufacturing facilities online in 2028, but cautioned that production ramps would be gradual. He cited technological transitions in memory design, including shifts toward higher-specification chips, as constraints on production growth. The CEO also noted that demand factors including larger artificial intelligence models, increasing data processing requirements, and expanded enterprise applications continue to drive memory needs upward.
Samsung, a competing memory manufacturer, provided corroborating perspectives on the supply situation. An executive at Samsung indicated that high-bandwidth memory will consume nearly thirty percent of DRAM manufacturers’ production capacity in 2027, up from twenty percent currently, further restricting the availability of memory chips for consumer electronics.
The manufacturing shortage has already reached consumers, with prebuilt personal computers and other consumer devices experiencing higher costs and reduced memory configurations. The constraint has affected pricing across multiple product categories, including smartphones, streaming devices, and gaming consoles.
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