Samsung says the global shortage of memory chips is likely to worsen in 2027 and persist until at least 2028, driven largely by AI companies securing capacity for data centres. The shortage matters because it is raising component costs across the technology sector, putting upward pressure on consumer electronics prices and weakening demand for some devices.

Samsung, which supplies about a third of the world’s memory chips, says AI firms are sharing long-term demand forecasts and signing supply contracts, giving manufacturers confidence to expand production. Its semiconductor sales reached a record in the second quarter, but higher chip costs reduced profitability in its phone and television businesses; Samsung has raised some Galaxy prices, while Apple has also increased prices for Macs and iPads. Nvidia is expected to raise consumer graphics-card prices by 20% to 30%, potentially increasing the cost of gaming PCs, laptops and consoles.