South Korea’s leading memory-chip manufacturers are entering a prolonged supply squeeze as artificial-intelligence data centers absorb high-bandwidth memory, server DRAM and enterprise storage. Samsung Electronics has warned that shortages could persist through 2028, while SK hynix’s chief executive has said demand may exceed the company’s production capacity beyond 2030. The outlook covers both specialized memory used with AI accelerators and conventional products serving servers, PCs and mobile devices.
The pressure is already reflected in customer commitments. Micron Technology said more than 75% of its planned fiscal 2027 output had been reserved, with discussions increasingly extending into 2028. The company also reported 26 strategic customer agreements, up from 16 in June, with some contracts running through 2031 and expected to represent more than 35% of revenue through 2030. Customer financial commitments tied to those agreements had risen to $32 billion.
Samsung has signed long-term agreements with five major global data-center customers and was nearing agreements with five more. If completed, those contracts would cover roughly 60% to 70% of its medium- and long-term memory capacity. SK hynix said it had completed long-term supply negotiations with about 10 customers, with contracts generally lasting around five years. The companies’ move toward earlier commitments shows that buyers are trying to secure supply well before new production becomes available.
Capacity is difficult to add quickly because high-bandwidth memory requires more wafers and specialized packaging than conventional DRAM.
Samsung and SK hynix are also participating in a South Korean government plan intended to double the country’s memory-chip production capacity within five years. SK hynix has not committed to a specific overseas wafer-fabrication site, saying the United States, Japan and Southeast Asia remain under consideration based on land, electricity, water and skilled-labor availability. The immediate consequence of the supply imbalance is that additional capacity planned for later years does not eliminate the near-term constraint: industry forecasts place the tightest conditions in 2027, with undersupply expected to continue at least into 2028 and, in some projections, longer.