Samsung Locks 70% of Memory Chips to Five-Year AI Data Center Contracts, Warning of Deeper 2027 Shortage
Samsung said supply constraints for memory chips will intensify in 2027 and continue into 2028 after locking up to 70% of production in five-year AI data center contracts.
The allocation leaves roughly a third of the chips for smartphones, computers and automotive applications, memory chief Jaejune Kim said. The company noted that rollover demand and limited incremental supply updates will keep tight conditions in place through 2028, with forecasting visibility dropping sharply beyond that point.
From the sources (3 posts)
@intcyberdigest‼️ Samsung says 2026 is not the peak of the memory shortage. Memory VP Jaejune Kim told analysts supply constraints become "even more severe in 2027" and persist through 2028. Samsung is locking up to 70% of output into five-year AI data-ce
@firstadopterWE ARE SO BACK! This sounds VERY GOOD for memory chip companies. Samsung Electronics (h/t @jukan05 ): "Based on the demand visibility we currently have from customers, a substantial amount of unmet demand will roll over into next year, cre
@pequityresearchSamsung Electronics on memory: "we believe it will be unlikely to see any significant increase in incremental supply through 2028. The supply constraints are expected to become even more severe in 2027 than 2026, reinforcing our view that t