The Pulse
Samsung Sees Tight Memory Supply Continuing Into 2028
Samsung Memory Business executive Jaejune Kim said tight memory supply conditions are expected to continue into 2028, as capacity additions take time to increase production. He said capital expenditure across the broader market is expected
AI.info Team · Written with AI · fact-checked ·
Samsung Electronics expects tight memory supply conditions to continue into 2028, according to Jaejune Kim, executive vice president of its Memory Business. Speaking on the company’s third-quarter earnings call on October 29, Kim said demand is rising as AI infrastructure expands and personal AI agents spread, while new capacity takes time to translate into more production.
“On balance, with all things considered, we expect tight supply conditions to continue in 2028.”
— Jaejune Kim, executive vice president of Samsung Electronics’ Memory Business.
New investment will take time to affect output
Kim said capital expenditure across the broader market is expected to rise significantly in 2027, following strong industry performance in 2026. But he cautioned that higher spending is unlikely to produce a meaningful increase in memory bit production by 2028. A large share of the planned increase, he said, is directed toward acquiring new space, while higher construction costs can make spending totals appear larger.
Building new facilities and reaching wafer production takes time, Kim said. The lead time means 2027 investment is unlikely to add substantially to output in 2028. Equipment costs and upfront payments to secure supply can also increase capital spending without immediately expanding production. Longer equipment order lead times may make timely procurement more difficult and constrain suppliers’ capacity ramp-ups.
Kim also pointed to changes in the products being made. As HBM4E and HBM5 become more central products, their larger dies and increased metal process layers use more production resources. With production shifting from conventional DRAM toward HBM, he said, that shift adds a physical constraint on supply. Samsung plans to secure cleanroom space in advance while keeping equipment installations flexible as it monitors changes in demand. Kim noted that macroeconomic events could also affect market conditions.
AI demand is broadening
Kim linked the memory outlook to continued investment in AI infrastructure and wider use of personal AI agents. Samsung’s earnings release said demand growth is expected to involve products related to new CPU and GPU platforms, while demand for QLC solid-state drives is tied to the expansion of personal AI agent services. The company said it plans to increase sales of HBM, server DRAM and SSDs, including QLC SSDs.
Samsung reported third-quarter revenue of 195.3 trillion won, up 14% quarter on quarter, and operating profit of 107.4 trillion won. Its Device Solutions division, which includes memory, posted revenue of 147.1 trillion won and operating profit of 106.5 trillion won. Samsung said its Memory Business set quarterly records for revenue and operating profit amid capacity constraints and strong server demand.
Spending plans and supply outlook
Samsung’s capital expenditure for the third quarter was 29 trillion won. The company expects full-year 2026 spending of approximately 84.4 trillion won, including 76.8 trillion won for the Device Solutions division. It said investments in that division are planned for new fabs and other infrastructure to meet AI and high-performance computing demand and prepare for the longer term.
The spending figures describe investment plans, not an immediate increase in available memory. Kim’s remarks point to fab construction timelines, equipment procurement and the production shift toward HBM as factors that can limit how quickly capacity grows. Samsung’s forecast is for tight overall supply conditions to continue into 2028, while the company says it will adjust equipment installations as it observes market demand.