Key information
Memory manufacturer Micron recently informed investors that global RAM shortages will persist, revealing that the majority of next year's production is already sold. Sanjay Mehrotra, CEO and chair, stated that supply and demand will remain tight through 2027 and into 2028. Mehrotra noted that the firm lacks visibility on when market equilibrium will return.
The major manufacturers have allocated most production capacity to high-bandwidth memory required for artificial intelligence datacenters. This shift leaves minimal capacity for consumer-grade components, driving up prices for electronics including PlayStation 5, Xbox Series X/S, Switch 2, and Valve's Steam Machine. Samsung also indicated that the component crisis will worsen into next year.
To address market pressures, Micron intends to launch new factories in 2028, supported by significant capital expenditures early in its financial year. However, leadership cautioned that these new facilities will not immediately alleviate pricing or availability issues.
