The memory chip shortage is likely to continue into 2027, manufacturers Samsung and SK Hynix have warned.

Following the publication of record-breaking Q4 2025 results this week, both memory chipmakers cautioned that demand would continue to outstrip supply, with consumer electronics likely to suffer the most in the face of ongoing shortages as capacity will increasingly become allocated to AI infrastructure projects.

SK Hynix posted full-year operating profits of 47.2 trillion won ($33.3 billion), with quarterly operating profits growing 137.2 percent to 19.2 trillion won ($13.4bn) for the final three months of 2025.

By comparison, Samsung’s full-year operating profits totaled 43.6 trillion won ($30.5bn), with the company’s memory division recording operating profits of about 24.9 trillion won ($17.4bn) for FY2025.

The comments come as the industry attempts to grapple with a shortage of storage and memory hardware, with the size and scale of many AI data center build-outs announced this year seemingly having caught the market off guard and resulting in a capacity crunch.

In December 2025, Micron announced plans to exit the consumer memory and storage market in favor of AI data center customers. Earlier this month, the Wall Street Journal reported that data from TrendForce shows that up to 70 percent of the memory produced worldwide in 2026 will be consumed by data centers.

On its earnings call, the company’s head of DRAM, Park Joon Deok, said that PC and mobile customers were having trouble securing memory supplies as they are being “directly and indirectly affected by supply constraints and strong demand for server-related products."

As a result of the recent surge in memory chip prices, he went on to note that consumer electronics customers had already started adjusting purchase volumes.

This sentiment was echoed by Samsung during its own earnings call, with Kim Jae-june, head of Samsung Electronics' memory business, telling analysts that “while the expansion of supply in 2026 and 2027 is expected to be limited due to constrained cleanroom space within the industry, the supply shortage is anticipated to persist due to strong demand linked to AI.”

In an effort to address the shortages, Kim said that in anticipation of sustained strong AI demand, Samsung is planning to invest in new fab space to secure cleanroom capacity in advance and “maintain a proactive investment strategy going forward.”

Both companies are currently undertaking efforts to expand production capacity with the construction of new fabs in South Korea. Samsung’s P5 facility in Pyeongtaek, Gyeonggi, is expected to be operational by 2028, while SK Hynix’s forthcoming M15X facility is slated for utilization by mid-2027.

In October 2025, Samsung Electronics and SK Hynix signed a letter of intent with OpenAI for the eventual supply of 900,000 DRAM wafers a month in order to meet the memory demands of its Stargate project. However, neither Samsung nor SK Hynix has made any further comments regarding the deal, and it is unclear when the two companies are expected to start being able to fulfil the order.