Samsung Electronics said chip supply shortages will worsen in 2027 versus this year and are likely to persist through 2028. The company warned near-term supply cannot be materially increased because it takes more than 3.5 years to move from new fabs to wafer production, so even higher industry capex is unlikely to produce a large supply uplift before 2028. Samsung also said the spread of generative AI has driven a surge in token consumption, sharply boosting memory demand for AI servers and lift

Samsung Electronics said chip supply shortages will worsen in 2027 versus this year and are likely to persist through 2028. The company warned near-term supply cannot be materially increased because it takes more than 3.5 years to move from new fabs to wafer production, so even higher industry capex is unlikely to produce a large supply uplift before 2028. Samsung also said the spread of generative AI has driven a surge in token consumption, sharply boosting memory demand for AI servers and lifting general-purpose server memory requirements to unprecedented levels, leaving industry capacity well short of customer needs.