Samsung Warns AI Chip Shortage Will Worsen in 2027 as Profits Hit Record High

The rapid expansion of AI data centres is increasing demand for high-performance memory chips. These components help AI processors handle large volumes of data efficiently, making them essential for training and running advanced AI models.

One important technology is high-bandwidth memory (HBM), which provides fast data transfer between memory and processors. It is widely used in AI accelerators and high-performance computing systems.

Samsung said its HBM supply for 2027 has already been sold out, while customers are requesting additional quantities. The company expects AI-related demand growth to exceed available industry supply by a wider margin in 2027 than in 2026.

Increasing semiconductor production takes time because manufacturers need specialised equipment, advanced manufacturing facilities and substantial investment. As a result, chipmakers may struggle to increase supply quickly enough to meet rising demand.

Samsung is increasing investment in its semiconductor business to respond to growing demand for AI memory and server components.

The company reported capital expenditure of KRW 29 trillion in the third quarter of 2026. Its investment includes efforts to expand production capacity and strengthen its position in advanced memory technologies.

Samsung expects demand for AI infrastructure to remain strong in 2027. However, the company must balance manufacturing expansion with production costs, technological competition and changing market conditions.

Despite Samsung's record profits, investors remain cautious about the company's outlook and shareholder-return plans. Reuters reported that Samsung shares fell as much as 6.2% following the results.

Investors were also waiting for details about dividends and other shareholder returns. Samsung said it expects to finalise its next shareholder-return policy at a board meeting scheduled for late January 2027.

The reaction shows that strong financial results do not always satisfy investors when expectations for future growth and shareholder benefits remain uncertain.

A prolonged AI memory chip shortage could increase infrastructure costs for data-centre operators, cloud computing providers and AI hardware manufacturers. Higher component prices could also affect the cost of producing servers and other electronic devices.

For semiconductor companies, continued demand creates opportunities, but the ability to supply advanced memory reliably will be increasingly important.

Samsung's latest results highlight how AI is reshaping the semiconductor industry. With its 2027 HBM supply already sold out, the company expects continued pressure on memory-chip availability. Its ability to expand production and meet customer demand will be important as the AI industry continues to grow.

Sources: