Samsung and SK Hynix have flatly refused

The most basic response for a market with a lot of demand and rising prices is none other than increasing production. However, in a memory market experiencing a pricing crisis (largely due to the “perfect storm” caused by AI), the two actors that control a huge percentage of the world’s supply have opted for the opposite strategy.

Samsung and SK Hynix have confirmed to their investors that They have no intention of flooding the market to alleviate the shortage. Their priority has changed: they prefer short-term profitability and security against a possible AI bubble, which, as we already said, has caused the industry to stop manufacturing for people to make it for the machines.

Slam the door on mass production. The decision of the South Korean memory giants is firm and public. According to what they collect international media and the korean newspaper HankyungSamsung has clarified in investment conferences that its strategy is now focused on minimizing the risk of overproduction rather than rapidly expanding its capacity.

This path already has tangible consequences: currently, Samsung only manages to satisfy 70% of the DRAM orders it receives. SK Hynix, on the other hand, has openly admitted that “it will be difficult to resolve the supply shortage” before the first half of 2027.

Goodbye to stable controls. The new supply restriction policy is accompanied by a change in the commercial rules of the game. The South Korean media points out that Samsung has begun to reject long-term contracts. This prevents PC or mobile manufacturers from being able to protect themselves against inflation, passing the extra cost on to the end user. It is the materialization of what Xiaomi managers They already warned weeks ago: your next cell phone is going to be more expensive.

Sacrifice the consumer for a good reason. The technical reason behind the shortage is a transfer of resources. Production lines are turning to the manufacture of HBM memories — even Intel as response to your current situation— essential for AI GPUs. The most drastic example is Micron, the third player, which has announced the closure of its “Crucial” consumer division to focus on the data and AI sector. By reserving production for strategic clients, the consumer market becomes more undersupplied.

Fear of the bubble. Behind this refusal to maximize production to satisfy everyone lies a trauma. Manufacturers fear that the AI ​​fever is a bubble and will collapse after massive expansion. Because? They would be left with oversized factories and million-dollar losses. They prefer to maintain the current shortage – which has triggered memory by up to 300% in some cases – rather than risk future excess stock.

The projections are not optimistic. Analysts conclude that the crisis will extend beyond 2028. It is estimated that memory demand will grow by 35% in 2026, while supply will only grow by 23%. With Micron withdrawing from the consumer market and Korean giants slowing production, shortages will cease to be a situation and become the market norm in the coming years.

Cover image | Composition with images of PxHere and CEFICEFI for Wikimedia Commons

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