Samsung Warns AI Memory Shortage Will Deepen by 2027
Samsung Electronics has indicated that the demand for AI memory chips is expected to significantly exceed supply by 2027, which could lead to increased cost pressures for smartphone manufacturers and other companies in the consumer electronics sector. In its third-quarter earnings release on Thursday, the South Korean electronics major indicated that investment in AI infrastructure is projected to attain a historic high next year as the AI ecosystem continues to expand. The company anticipates that demand driven by AI will exacerbate the disparity between memory chip demand and supply relative to 2026. Samsung reported record consolidated revenue of approximately $146.2 billion and operating profit of approximately $79.8 billion for the quarter ended September 30, 2026. Revenue increased by 14 percent on a sequential basis.
The company stated that the gains were primarily driven by its semiconductor business, which experienced strong demand for memory chips utilised in AI servers and data centers. Samsung reported an operating loss of 0.6 trillion won in its mobile and networks divisions for the September quarter, attributing the year-on-year decline in earnings to cost pressures, even as revenue increased. The company did not announce any increases in consumer prices. However, sustained increases in component costs could exert pressure on manufacturers’ margins and affect pricing decisions throughout the electronics industry. Samsung’s mobile division intends to concentrate on high-end smartphones and unique product attributes in 2027, as stated in the announcement.
Samsung’s Device Solutions division, encompassing its semiconductor operations, recorded revenue of around $110.2 billion (147.1 trillion won) and an operating profit of about $79.8 billion (106.5 trillion won) in the third quarter. Its memory business achieved a record high in quarterly revenue and operating profit, driven by robust server demand, capacity limitations, and elevated market prices across various applications. “The DS Division once again set an all-time quarterly record by expanding high-bandwidth memory (HBM4) sales in memory and actively responding to server demand,” the company said. The company intends to focus on high bandwidth memory, server dynamic random-access memory, and solid-state drives, while also enhancing the availability of high-speed server memory and additional products utilised in AI infrastructure.
Samsung anticipates an increase in demand for high-capacity SSDs as the expansion of personal AI agent services continues. It intends to establish multi-year contracts and synchronise new product introductions with the needs of its customers. Samsung anticipates that its capital expenditure for 2026 will amount to approximately $63.2 billion, which translates to 84.4 trillion won. Of this total, around $57.5 billion, or 76.8 trillion won, is earmarked for its semiconductor division. Samsung announced that its investment will concentrate on the development of new fabrication facilities and infrastructure to address the robust demand for AI and high-performance computing.
