Despite ongoing efforts by suppliers to scale up DRAM production, memory manufacturers are projected to satisfy only 60 percent of global demand by the close of 2027, according to insights from Nikkei Asia. This significant shortfall has prompted concerns, with the chairman of SK Group even suggesting that these supply constraints could persist until 2030.
The world's leading memory producers, including industry giants Samsung, SK Hynix, and Micron, are actively investing in expanding their fabrication capacities. However, the operational impact of these new facilities is largely anticipated to materialize no earlier than 2027, potentially extending into 2028. A notable exception is SK's new fab in Cheongju, which commenced operations in February, marking the sole production increase among these three major players for the year 2026.
To adequately meet projected demand, Nikkei indicates that an annual production increase of 12 percent would be necessary throughout 2026 and 2027. In stark contrast, current plans, as reported by Counterpoint Research, only account for a more modest 7.5 percent increase in output.
A crucial factor in this evolving landscape is the primary focus of these forthcoming facilities on high-bandwidth memory (HBM), a critical component for advanced AI data centers. Given that companies are already prioritizing HBM production over general-purpose DRAM, which is vital for consumer devices like computers and smartphones, it remains uncertain how effectively these new fabs will alleviate the escalating price pressures impacting the consumer electronics sector. The ongoing RAM shortage has already contributed to price hikes across a range of products, from smartphones and laptops to VR headsets and gaming handhelds.
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