AI demand drives extended RAM shortage through 2028, pushing prices higher

Executives at major memory manufacturers Micron and Samsung have indicated that RAM shortages will persist for at least two more years, with manufacturing capacity prioritized for AI and server applications at the expense of consumer devices. Micron's CEO stated that 75 percent of the company's 2027 memory output is already committed, and prices for future deliveries significantly exceed current rates. The shortage stems from surging demand for high-bandwidth memory needed for larger AI models and enterprise applications.

The shortage reflects a fundamental shift in manufacturing priorities within the memory industry. Micron and Samsung, the sector's largest producers, are increasingly dedicating fabrication capacity to high-bandwidth memory chips essential for AI infrastructure and data center operations rather than consumer-grade RAM. This reallocation stems from explosive demand for larger AI models requiring substantially more memory resources than previous generations of computing applications.

The supply constraint will extend well beyond current timelines due to production realities. New manufacturing facilities planned for 2028 will take considerable time to reach full operational capacity, and technical transitions to advanced memory architectures offer diminishing efficiency gains per production unit. With 75 percent of Micron's 2027 output already committed and prices for future deliveries substantially elevated, the company signals no near-term resolution despite capital investments in expanded production.