Samsung’s advisor warns of memory chip market crash by 2028
Since the artificial intelligence (AI) boom, the demand for hardware that processes these tasks, such as AI accelerators, has started going up. These components use a high amount of memory (RAM), which resulted in the demand for memory chips skyrocketing.
As the demand outgrew supply, the prices of memory chips started climbing up, and the three major memory chip manufacturers around the world, Micron, Samsung, and SK Hynix, have been enjoying the situation, as it brings them a lot more revenue and profits.
To either take advantage of the situation or to bring down the prices of memory chips, or both, China-based memory chip manufacturers are reportedly working on increasing the production of memory chips massively by the second half of next year (H2 2027).
On that matter, Samsung’s former DS Division head and standing advisor, Kyung Kye-Hyun, says that the significant increase in the supply of memory chips will result in memory chip prices falling sharply in the second half of 2027 or the first half of 2028 (via SEDaily).
His exact words were “Chinese companies are aggressively expanding their production capacity. There is a possibility that the market will change starting from the second half of next year or the first half of 2028, when memory supply surges.” The top official added, “If the return on investment for Big Tech decreases relative to capital investment, there is a possibility of reduced investment.”
If big companies don’t see the returns on their investments in AI, they may not invest in it, and therefore in memory chips as much as they did before. With the demand for memory chips going down, their prices will fall even further. It means lower revenues and profits for memory chip businesses. In other words, Kyung seems to be warning everyone that a significant downfall in the memory business is in sight.
