Two of the world’s biggest chipmakers are warning that a worsening shortage of DRAM memory chips

Two of the world’s biggest chipmakers are warning that a worsening shortage of DRAM memory chips is starting to hit computer and smartphone makers hardest, as manufacturers shift production toward more profitable chips used in AI infrastructure.

Samsung Electronics and SK Hynix, which together control about two-thirds of the global DRAM market and supply major customers like Apple, say demand for traditional memory chips is being squeezed as factories prioritize high-bandwidth memory (HBM) for AI servers. The result: tighter supply, rising prices, and growing pressure on consumer electronics companies.

“PC and mobile customers are having difficulties securing memory supplies,” said Park Joon Deok, head of DRAM marketing at SK Hynix, during a post-earnings call. He noted that strong demand for server products is directly and indirectly affecting availability for consumer devices.

The global race to build AI infrastructure has pushed chipmakers to redirect manufacturing capacity toward HBM, which is essential for AI workloads. That shift has left fewer production lines making conventional DRAM used in smartphones, laptops, and PCs.

Adding to the problem, memory chipmakers have been cautious about expanding capacity after being burned by overproduction during the 2017 chip boom. Samsung said any major expansion will remain limited through 2026 and 2027, prolonging the current supply crunch.

With prices climbing and supplies tight, device makers are already adapting. SK Hynix said some customers are cutting back on memory purchases, revising shipment plans, or lowering memory specifications in more price-sensitive products.

Market researchers are now seeing the impact. IDC and Counterpoint both expect global smartphone sales to fall by at least 2% this year, reversing earlier growth forecasts. IDC also predicts the PC market will shrink by nearly 5% in 2026, following strong growth last year.

Samsung itself isn’t immune. The company reported a 10% drop in fourth-quarter profit for its mobile business. Samsung mobile executive Cho Seong warned that 2026 will be a “challenging year,” with flat smartphone shipments expected and further downside risks tied to rising memory prices.

Investors are also watching closely to see how Apple responds to the global memory crunch when it reports earnings later this week.

AI Takes Priority

Samsung confirmed it prioritized server customers in the fourth quarter and plans to further increase the share of AI-related products in its output. While that strategy boosts margins, it could further restrict supplies of conventional memory chips.

The push into AI memory is also part of Samsung’s effort to close the gap with SK Hynix, which currently dominates the HBM market. According to Macquarie Equity Research, SK Hynix held a 61% share of the HBM market last year, compared with 19% for Samsung and 20% for Micron.

As AI investment accelerates, the message from chipmakers is clear: consumer electronics may continue to feel the squeeze.