Memory Chip Shortage to Worsen as Top Makers Reportedly Sell Out 2027 Supply

A severe memory chip shortage is expected to intensify and extend through 2027, as the world's three largest manufacturers have already sold out their projected supply for that year, according to a tech media report citing industry sources. Samsung, SK Hynix, and Micron Technology have reportedly finalized capacity allocation talks for 2027 with no immediate plans for additional production increases.

Supply Crunch Deepens

Industry insiders indicate that 2027 will mark the most critical phase of the memory shortage. Customers are reportedly receiving allocations equivalent to only 60% to 70% of their initial requests for both DRAM and High Bandwidth Memory (HBM) chips. While allocation volumes are now largely set, final pricing will be determined closer to the delivery dates, the report noted.

According to Q2 market share data from Counterpoint Research:

• Samsung leads the DRAM market with a 39% share.
• SK Hynix holds the second position with 26%, a notable decrease from 39% in the prior year.
• Micron follows closely with a 25% share.

To mitigate the persistent supply constraints, some major PC manufacturers have reportedly begun sourcing DRAM chips from China’s ChangXin Memory Technologies (CXMT). This follows earlier reports that Apple had also started testing CXMT's memory chips.

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Expansion Plans Stoke Oversupply Fears

Despite the current shortage, memory chip stocks broadly declined last month amid investor concerns that aggressive, large-scale capacity expansions could lead to a future supply glut and price pressure. These fears culminated on July 28, when South Korea's KOSPI index fell over 10%, with both Samsung and SK Hynix shares plunging more than 13% in a single day.

This market sell-off occurred even as the major producers reported record-breaking financial results. The anxiety stems from ambitious expansion plans:

• Samsung is planning a 50% increase in production capacity.
• SK Hynix has announced massive capital expenditures and plans to accelerate the construction of its semiconductor cluster in Yongin, South Korea.
• Micron has committed to investing $250 billion in the U.S. by 2035.

A Morningstar analyst cautioned that new fabrication plants take two to three years to become operational. The risk, according to the analyst, is that a peak in new output could coincide with a slowdown in demand, creating a significant oversupply problem in the market.