Memory Manufacturers Worried About Oversupply! Expected Demand Boom to End in 2028

According to Wccftech, the latest industry report shows that memory suppliers like Samsung and SK Hynix are taking a relatively “cautious” approach to expanding DRAM production plans because they are concerned about a potential oversupply in the future.

It is understood that although manufacturers like SK Hynix and Samsung are currently benefiting from unprecedented demand, they remain cautious about increasing capacity. South Korean media Chosun Biz reports that Samsung expects the memory shortage to end around 2028. To avoid over-investing in expansion plans, the company is adjusting its strategy based on demand forecasts.

The report states that suppliers are worried about entering another “downward cycle” in DRAM demand, leading to increased caution regarding “expanding production facilities.”

From a business perspective, after the pandemic, Samsung and SK Hynix experienced several quarters of weak DRAM demand. At that time, the PC industry lacked motivation to buy new products, and enterprise market demand was also sluggish, resulting in a supply glut. Korean memory manufacturers took a long time to gradually absorb this excess capacity.

Currently, the only way to address the memory shortage is for suppliers to increase capacity, as related demand is unlikely to decline significantly in the short term. As for when prices might return to normal, there is no clear timeline yet, but many reports suggest that the current upward trend in DRAM and consumer electronics prices may have become a “new normal.”

However, from a consumer perspective, memory price fluctuations tend to be more “direct” than industry cycles. If DRAM prices remain high for the next few years, the ultimate payers are likely to be ordinary players and consumers. Do you think this memory price increase is just a cyclical short-term phenomenon, or could prices stay high in the future? Feel free to share your thoughts in the comments.