Samsung Electronics and SK Hynix have warned that a worsening shortage of DRAM chips will hit PC and smartphone makers hardest, as the chipmakers prioritize high-bandwidth memory (HBM) for AI infrastructure. Together, Samsung and SK Hynix control around two-thirds of the global DRAM market, supplying companies like Apple, and their shift toward AI-related chips is straining conventional DRAM supplies.
The shortage is partly due to conservative production expansions following overcapacity after the 2017 memory supercycle. Both companies expect limited capacity growth through 2026 and 2027, keeping conventional DRAM supply tight. PC and mobile manufacturers are adjusting orders, reducing volumes, or modifying specifications to manage higher memory costs.
Analysts now forecast a 2% decline in global smartphone sales in 2026, while the PC market may shrink by 4.9%, reversing last year’s growth. Samsung executives expect a “challenging year” for smartphones, with flat shipments and potential downward revisions due to memory prices.
The prioritization of AI-related memory is intensifying competition in the high-bandwidth memory market, where SK Hynix leads with a 61% share, followed by Samsung at 19% and Micron at 20%. Both Samsung and SK Hynix aim to expand their presence in the AI HBM segment, which is driving the chip shortage affecting consumer electronics.
