Samsung, SK Hynix Capitalize on the AI Boom, Warn of DRAM Chip Crunch
In Focus
- Demand for HBM chips has risen as companies rush to develop AI infrastructure
- Samsung and SK Hynix are prioritizing production of HBM chips over DRAM chips
- The shortage of DRAM chips will affect consumer electronics supply chains
Leading chip manufacturers, SK Hynix and Samsung Electronics, have warned of worsening Dynamic Random Access Memory (DRAM) shortage needed to make smartphones and computers. According to Yahoo Finance, the Samsung, SK Hynix chip supply warning comes as the two firms prioritize orders for more lucrative chips needed to build AI data centers.
What is Causing DRAM Chip Shortage?
Several factors have triggered the DRAM supply squeeze amidst the AI boom. Tech companies are rushing to develop AI infrastructure as they seek to ride the AI boom. This rush has caused memory chip manufacturers to focus on high-bandwidth memory (HBM) production needed for AI servers. As a result, the supply of traditional DRAM has been affected.
Additionally, most chipmakers have been reluctant to increase production lines after aggressive expansion hurt their profits after the 2017 supercycle. Samsung plans to limit such expansion in 2026 and 2027. With the memory chip crunch expected to persist, companies are finding ways to cope with the situation.
“Due to a recent surge in memory chip prices, PC and mobile customers are adjusting purchase volumes. Some customers are taking a more conservative approach to shipment plans or considering adjusting memory chip specification in their price-sensitive product ranges,” SK Hynix said as per Yahoo Finance.
The Samsung, SK Hynix memory chip shortage warnings come days after SK Hynix signed an exclusive HBM supply deal with Microsoft. Under the deal, the South Korean firm will be the sole supplier of advanced memory for Microsoft’s new AI chip, Maia 200.
Impact of DRAM Shortage on Consumer Products
Samsung and SK Hynix control about 75% of the DRAM chip market and serve top tech companies such as Apple and NVIDIA. Their warning about DRAM shortage could mean tighter margins and potential challenges across the consumer electronics supply chain.
“PC and mobile customers are having difficulties securing memory supplies, as they are being directly and indirectly affected by supply constraints and strong demand for server-related products,” DRAM Marketing Head at SK Hynix, Park Joon Deok noted as cited by Yahoo Finance.
Samsung is preparing for the impacts of the smartphone and PC chip supply squeeze following a 10% profit drop in its smartphone unit in the fourth quarter. Last month, Counterpoint Research projected a 2.1 % drop in global smartphone shipments due to the memory chip crunch.
Chipmakers Focus on HBM Production
SK Hynix, which led the HBM chip market in 2025 with a 61% market share, plans to maintain control with its HBM4 chips. The company announced plans to move HBM4 chips to mass production in September 2025.
Samsung controlled 19% of the global HBM chip market last year, while Micron Technology held a 20% share. In the fourth quarter, Samsung plans to prioritize server clients. The company also plans to expand its AI product range, which could further constrain the supply of conventional memory chips.
