Samsung Electronics Co-CEO TM Roh said Monday that an ‘unprecedented’ shortage of computer memory could drive up prices for consumer electronics, including smartphones, TVs, and home appliances.
In an interview with Reuters, Roh said the shortage’s impact on the hardware industry is ‘inevitable’ and that ‘no company is immune.’
Computer memory—typically either volatile dynamic random access memory (DRAM) or non-volatile NAND flash—is essential for nearly all technology products. DRAM is used for temporary data storage, while NAND flash powers long-term storage in devices like solid-state drives.
The current shortage has been driven in part by surging demand from hyperscale technology companies—such as Alphabet, Meta, and Oracle—investing heavily in data centers to support artificial intelligence applications.
In response, global memory producers have shifted production toward high-bandwidth memory (HBM) for AI use. Samsung, SK Hynix, and Micron dominate the DRAM market. In December, Micron announced it would exit its consumer business to meet AI-related demand.
This shift has affected pricing across the market. DRAM prices, including next-generation DDR5 and older DDR4 modules, have more than doubled. NAND flash memory has also seen significant price increases, with Phison, a solid-state drive equipment provider, warning costs could rise by up to 75%.
The share prices of companies like Western Digital and Seagate, which manufacture storage devices, have performed strongly. Stock markets in South Korea and Taiwan also hit record highs, driven by optimism surrounding major chipmakers including Samsung, SK Hynix, and Taiwan Semiconductor Manufacturing Company.
While these developments have benefited some semiconductor firms, ongoing supply constraints could limit consumer product availability and drive up prices. Roh warned that without expanded capacity, higher costs may be passed on to consumers of products such as smartphones and laptops.
The effects could be broad. Aside from Samsung’s Galaxy phones, companies like Apple and Google may also face new challenges in supplying their devices amid rising component costs.
