Micron CEO Warns of Ongoing Global Memory Shortage Until 2028 Due to AI Demand

The ongoing memory shortage is reshaping pricing and availability across the global electronics market.

• Micron CEO Sanjay Mehrotra announced that memory shortages will continue through 2028, driven by AI demand.
• 75% of Micron’s 2027 output is already committed, primarily for high-bandwidth memory (HBM) used in AI applications.
• Samsung's EVP Kim Taewoo confirmed that HBM will account for nearly 30% of DRAM wafer capacity in 2027, up from 20% in 2026.

• The memory shortage began due to surging demand for HBM and DRAM in data centers, particularly for AI applications.
• Manufacturers are prioritizing AI and server memory over consumer-grade DRAM, leading to reduced supply for everyday electronics.
• Micron's strategic shift away from consumer RAM sales in December 2025 has intensified the focus on B2B customers, further constraining supply.

The global memory shortage is a complex interplay of rising demand, shifting production priorities, and structural supply constraints. As AI technologies proliferate, the need for high-bandwidth memory (HBM) has surged, particularly in data centers that support AI applications. Micron's CEO, Sanjay Mehrotra, highlighted that 75% of the company's 2027 memory output is already sold out, indicating a tight supply environment that is unlikely to ease soon.

The structural constraints stem from several factors. First, new production facilities are being developed, but they will not ramp up output quickly enough to meet the soaring demand. The clean rooms planned for 2028 will take time to become operational, and even then, the gradual increase in production capacity will not immediately alleviate shortages. This means that the market will continue to experience tight conditions, with manufacturers prioritizing HBM for AI over consumer-grade DRAM.

Additionally, Samsung's EVP Kim Taewoo corroborated this trend, projecting that HBM will account for nearly 30% of DRAM wafer capacity in 2027, a significant increase from 20% in 2026. This shift reflects a broader industry trend where manufacturers are reallocating resources to meet the demands of AI applications, further squeezing the supply of memory products available for consumer electronics.

The implications of this shortage are profound. As demand continues to outstrip supply, prices for memory products are expected to remain elevated. This will likely lead to higher costs for consumer electronics, including PCs, smartphones, and gaming consoles. OEMs may respond by offering lower-specification devices at higher prices, making it more challenging for consumers to access the technology they need.

In summary, the memory shortage is not just a temporary blip; it is a reflection of a fundamental shift in the semiconductor industry driven by the explosive growth of AI technologies. As companies like Micron and Samsung prioritize AI-related memory production, consumers will feel the impact through higher prices and reduced availability of essential electronics.

• Consumers: Higher prices for PCs, smartphones, and gaming consoles.
• Retailers: Increased costs for inventory, leading to potential price hikes.
• Tech companies: Strained budgets as they compete for limited memory supplies.
• Data centers: Prioritized access to memory, potentially sidelining consumer products.

• Price trends: Monitor memory prices to gauge the impact on consumer electronics.
• Production ramp-up: Watch for announcements regarding new facilities and their timelines.
• Market shifts: Keep an eye on how OEMs adjust their product offerings in response to supply constraints.