Samsung Electronics warns memory supply crunch will persist through 2028

Samsung Electronics said Thursday that memory supply shortages will persist through 2028, even as the company expands its production facilities.

The company cited two compounding factors: the lengthy construction time required to build new fabs, and growing lead times for ordering and receiving the semiconductor equipment needed to run them.

Kim Jae-jun, executive vice president and head of Samsung Electronics' memory strategy and marketing division, said during the company's third-quarter earnings conference call Thursday that "given the long lead time from new fab construction to wafer production, it appears difficult for capex increases in 2027 to make a meaningful contribution to production in 2028."

Kim added that equipment order lead times have also been lengthening, making it harder to secure machinery on schedule. "This could act as a constraint on suppliers' capex ramp-up," Kim said.

Kim further said that HBM4E and HBM5 — the products set to be ramped up as key next-generation offerings — will have larger die sizes than their predecessors and significantly more metal process layers. "Physical supply constraints therefore appear unavoidable," Kim said.