AI and server demand keeps memory supply tight into 2028, executives say
Micron says three-quarters of its 2027 memory output is already accounted for, while rising HBM production is squeezing capacity for other DRAM.
Memory supply is likely to remain tight for at least the next couple of years, according to executives at Micron and Samsung, as demand for artificial intelligence and server products grows. Micron chief executive Sanjay Mehrotra told investors he expects demand for the company’s memory to exceed available supply.
The outlook covers Micron’s business sales of high-bandwidth memory (HBM) for AI and DRAM for servers. Micron no longer sells consumer RAM, but the shift towards AI and server products is limiting manufacturing capacity for memory used in consumer devices.
Mehrotra said 75 per cent of Micron’s 2027 memory output was already accounted for, with most current sales discussions focused on 2028. HBM demand is outstripping demand for Micron’s DRAM, and he said HBM prices for 2027 were much higher than 2026 prices.
Micron plans to open new manufacturing clean rooms in 2028, but production there is expected to ramp up gradually. Mehrotra said the company does not know when its supply will catch up with demand.
Samsung executive Kim Taewoo said HBM could take almost 30 per cent of DRAM manufacturers’ wafer capacity in 2027, up from 20 per cent this year, Reuters reported. That shift would leave less capacity for consumer DRAM.
Consumers have already faced higher costs for prebuilt PCs and lower RAM configurations at higher prices, according to Ars Technica. The report does not quantify how memory prices or availability will change through 2028.
