Big Tech companies and hyperscalers are purchasing nearly every available memory chip, yet supply still can’t keep up with soaring AI demand. What began as a short-term shortage is now seen as a deeper structural issue centered on how quickly manufacturers can expand output. Increasingly, the answer appears to be years rather than months. A recent Nikkei Asia report highlights how constrained the market has become. The shortage is expected to continue until chipmakers add enough capacity and facilities to meet demand for AI-focused components.
Leading manufacturers such as Samsung, SK Hynix, and Micron are expanding investment in new fabrication facilities. However, analysts estimate that by the end of 2027, supply will satisfy only about 60% of demand for high-bandwidth memory products.
SK Hynix recently opened a new fabrication plant in Cheongju, but larger capacity expansions across foundries and integrated device manufacturers are not expected to begin operations until 2027 or 2028. Nikkei reports that producers would need to raise annual output by about 12% over the next two years to close the supply gap. Counterpoint Research, however, estimates growth will be much lower, at roughly 7.5%.
The longer-term outlook appears even more challenging. SK Group chairman Chey Tae-won recently said he expects the shortage to continue through 2030. In the meantime, the industry has shifted its focus toward high-bandwidth memory, a key component for AI accelerators and advanced GPU workloads.
SK Hynix alone holds about 32% of the global DRAM market and more than half of the HBM segment.
That focus means there is less attention on regular consumer memory. Chips for PCs and phones are not the priority anymore, and some are being pushed to the side completely. Micron Technology even shut down the Crucial brand, while other companies seem more interested in raising prices for as long as the AI rush continues.
We are already starting to see the ripple effects. Some system builders and OEMs are releasing consumer hardware with reduced performance goals because components are harder to secure. Directly or indirectly, the message seems clear: buyers may need to accept more tradeoffs right now.
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