Samsung chief warns of chip shortage lasting several years – AI demand drives semiconductor market

The background to the warning is a shortage of memory chips triggered by the global AI boom. Both classic DRAM modules and high-performance HBM chips, which are used in data centers for AI applications, have been in short supply for months. Samsung and its domestic competitor SK Hynix are investing billions in new production lines, but the build-up of additional capacity takes several years, according to industry sources.

Observers therefore expect prices for DRAM and NAND flash chips to remain high for the time being. This in turn drives up the cost of a wide range of end devices – from smartphones and laptops to servers for cloud services. Alongside SK Hynix and the US company Micron, Samsung is one of the three major manufacturers of memory chips worldwide.

The consequences are already visible in everyday life: end customers have to reckon with surcharges for certain memory configurations, and manufacturers of consumer electronics are also complaining about supply bottlenecks. Industry experts assume that the situation will ease at the earliest when the new factories that Samsung and its competitors are currently bringing online are running at full capacity in two to three years.

Consequences for consumers and industry

For Samsung, the chip division is by far the most important business area. Profits from the sale of smartphones, televisions, and household appliances are significantly lower by comparison. The company has repeatedly emphasized recently that the expansion of semiconductor manufacturing has top priority, even if this requires investments in the billions.

Market observers also see the renewed warning as a strategic signal to investors. Those who are in a position to respond to the bottleneck with additional capacity will profit above average in the long term. Samsung pointed in this context to the planned expansion of manufacturing sites in the Seoul area as well as to investments in the USA.

Outlook: When will the market ease?

Employees of the group also feel the consequences of the boom: the semiconductor division is considered comparatively well paid within the company, while other areas are confronted with job cuts and streamlining. Union representatives have in the past called for higher wages and better working conditions in the chip factories.

The industry therefore remains in a dilemma: on the one hand, the high demand for AI chips promises record profits; on the other, the need for ever larger manufacturing capacities is forcing manufacturers into enormous investments. Until new factories close the gap, the market is likely to remain tight according to Samsung's assessment.

For consumers, the development means above all one thing: technology will tend to become more expensive, and delivery times for devices with a lot of storage could lengthen. Analysts recommend carefully checking which memory configuration is actually needed for planned purchases and watching for deals on older inventory.