Samsung predicts memory chip shortage to last until 2028

Samsung Electronics forecast that the memory chip shortage will worsen and last through 2028, during its quarterly financial report. The company's executive vice president, Jaejune Kim, stated that the supply deficit in 2027 is expected to worsen compared to the current year and continue into 2028. Samsung has signed long-term supply agreements with five of the world's largest data center companies and is close to finalizing agreements with five others, with these contracts lasting at least five years and covering 60-70% of Samsung's total capacity in the long term. The deals include advance payments and minimum prices to hedge capital investment risks. Samsung's semiconductor division reported an operating profit of 89.2 trillion won ($61.7 billion), more than 250 times that of the previous year. However, the sharp rise in memory chip prices negatively impacted Samsung's mobile division, which reported a loss of 700 billion won for its first unprofitable quarter. The semiconductor business, competing with TSMC and Intel, is expected to improve in the near future due to higher factory utilization and chip prices. This year, Samsung plans to start operations at its factory in Taylor, Texas, and begin construction of a second plant, with mass production starting in 2030.