Samsung Electronics and SK Hynix are throwing billions at semiconductor manufacturing, but the global memory shortage could continue until 2030 despite record investment.
According to DigiTimes the South Korean memory giants are investing a combined €74 billion in manufacturing equipment during 2026 as demand for DRAM and high-bandwidth memory overwhelms existing production capacity. However, much of the additional capacity won’t be available until 2028 or later, leaving computer manufacturers facing prolonged shortages and rising component prices.
Semiconductor factories take years to build, and advanced memory manufacturing requires increasingly expensive equipment. Even cash-rich companies cannot conjure production lines overnight, especially when equipment suppliers struggle to meet demand.
Samsung expects memory supplies to remain tight through 2028 despite its aggressive expansion programme. The company is securing additional cleanroom space and investing in manufacturing infrastructure, but rising construction costs and extended equipment delivery times are restricting production growth.
SK Hynix has delivered an even gloomier forecast, predicting that memory demand could exceed supply until 2030. Long-term agreements already cover more than half its planned production capacity for 2027 and 2028, while customer negotiations suggest virtually all DRAM and HBM production could be committed through 2029.
High-bandwidth memory is making the situation worse because manufacturing HBM4 requires larger silicon dies, additional processing steps and complex packaging. This consumes production resources that could otherwise be used to manufacture conventional DRAM, giving suppliers every incentive to prioritise lucrative AI customers over ordinary PC manufacturers.
For desktop and notebook makers, the consequences are unpleasant. Memory manufacturers can command premium prices from AI data centre customers, leaving consumer electronics companies competing for increasingly expensive DRAM. NAND flash supplies are facing similar pressure as enterprise storage demand accelerates.
Both companies are expanding manufacturing facilities, including Samsung’s semiconductor operations in Taylor, Texas, and SK Hynix’s developments at Yongin and Cheongju. The latter’s M17 NAND facility is scheduled to open its first cleanroom in December 2028, while its Yongin Y2 DRAM plant is targeting June 2029.
To protect their enormous investments, the manufacturers are increasingly securing production through long-term customer agreements. Samsung has reportedly signed contracts with ten major customers and is negotiating with another ten, while SK Hynix has agreements with 14 customers. Such arrangements provide predictable revenue but leave fewer chips available on the open market.
China’s expanding memory industry could eventually complicate matters. ChangXin Memory Technologies is increasing conventional DRAM production, potentially introducing additional competition as South Korea’s new factories begin operating. However, the timing and scale of that capacity remain uncertain.
Meanwhile, the shortages are producing extraordinary financial rewards. Samsung reported third-quarter operating profit of approximately €72.2 billion, while SK Hynix generated approximately €56 billion, with AI infrastructure spending driving record profitability. The memory industry is enjoying a remarkable boom while its customers face an increasingly expensive struggle to obtain components.
With production commitments stretching toward the end of the decade and new factories years from completion, PC manufacturers face ongoing uncertainty about component availability and pricing. The shortage is increasingly threatening to reshape computer production costs, supplier contracts and hardware prices well beyond the current AI investment boom.
