The memory-chip industry remains in focus as booming artificial intelligence demand tightens supply, drives prices sharply higher and reshapes competition among major producers, including Samsung Electronics Co. Ltd.
Dan Kim, chief strategy officer at TechInsights, expects the supply crunch to intensify as AI data centers consume growing amounts of DRAM and other memory products while manufacturers race to add production capacity.
TechInsights Sees Memory Crunch Intensifying
Kim rated current memory-market conditions an eight out of 10 for "craziness," but expects that level to reach 10 and remain there through at least the end of 2027, the Financial Times reported on Friday.
TechInsights expects DRAM prices to rise more than 200% year over year, a move Kim called historically unprecedented. He said significant new supply will not arrive until late 2027 or early 2028, leaving higher prices to balance surging demand against limited production.
"Effectively there is no supply out there that hasn't already been spoken for," Kim said.
High-bandwidth memory used with AI accelerators has effectively sold out, while shortages have spread to other memory products. Kim said automotive companies, medical-device manufacturers and other traditional customers increasingly face allocation limits even when they accept quoted prices.
Samsung, SK Hynix And Micron Control Mainstream DRAM
Kim described mainstream DRAM as a highly concentrated market dominated by Samsung, SK Hynix and Micron.
He said the industry's enormous manufacturing scale, technological complexity and severe pricing cycles create significant barriers to new competitors. Advanced DRAM production also requires highly sophisticated manufacturing technology, including EUV lithography.
Samsung and SK Hynix are racing to expand production in South Korea, while Micron is building additional capacity in Idaho. However, Kim said constructing and qualifying a new fabrication plant can take between two and six years.
SK Hynix has gained an advantage through its leadership in high-bandwidth memory, though Kim said competing manufacturers are developing rival products.
YMTC And CXMT Challenge Established Players
Kim identified Chinese producers YMTC and CXMT as the main emerging challengers.
YMTC has become a competitive NAND supplier and produces roughly 10% to 15% of global NAND bits. Depending on how the market is measured, Kim said YMTC ranks as the second- or third-largest NAND provider.
CXMT remains further behind Samsung, SK Hynix and Micron in DRAM. However, TechInsights is finding more CXMT memory in flagship Chinese smartphones, including Huawei devices.
Kim said CXMT's lack of access to EUV lithography limits its ability to produce advanced DRAM, but Chinese producers could continue gaining share domestically with substantial state support.
He said the next memory downturn could become an important test if Chinese manufacturers invest aggressively while established producers pull back, potentially helping them capture additional market share.
Price Action: Micron Technology shares were up 1.63% at $973.80 and SK hynix shares were up 1.31% at $165.83 during premarket trading on Friday, according to Benzinga Pro data.
