Memory shortage to continue through 2027, manufactures to meet only 60% of DRAM demand

It is expected that memory shortage will prolong for several years as there is no sign of stabilization soon. This is because the DRAM markers are unable to meet the demand.

Although new production factories have been created but still DRAM manufacturer will be unable to keep pace with surging memory demand for years to come. The rapid rise of agentic AI is intensifying pressure on supply, creating persistent shortages that are expected to take significant time to ease.

According to a news report, DRAM suppliers may meet only around 60% of global demand by the end of 2027. As datacenters continue to scale rapidly and consume large volumes of memory, the industry is likely to face sustained price increases and limited availability in retail markets.

Leading manufacturers such as Samsung Electronics, SK Hynix, Micron Technology, and China-based Yangtze Memory Technologies are ramping up production capacity through new facilities and expanded production lines. However, these facilities will take time to become fully operational. For instance, Chinese players like YMTC and CXMT are working on multiple fabs, some already active and others expected to come online later, potentially doubling their output.

But despite all of this, AI factories are pre-booking entire year's worth of supply, leading to severe shortages in the smartphone and PC segments. And the majority of the new production lines will be focused on AI-specific DRAM such as HBM.

At the same time, major vendors are dropping legacy products like DDR3, DDR4, and LPDDR4, further tightening supply. Some have also scaled back consumer-facing brands to prioritize higher-margin segments such as HBM and emerging memory standards. This shift has opened the door for Chinese manufacturers to step in and address gaps in the mainstream market.

According to Counterpoint Research, DRAM output would need to grow by roughly 12% annually between 2026 and 2027 to keep up with demand. However, current projections indicate growth of only about 7.5%, widening the supply-demand gap. As a result, PC manufacturers and other hardware vendors are expected to face continued cost pressures, with memory prices likely to remain elevated for the foreseeable future—potentially not stabilizing until 2028 or beyond.