Samsung projects HBM will further eat into DRAM capacity, leading to more price hikes

Global DRAM production capacity is under severe strain as intense demand continues to outpace supply by some orders of magnitude.

Things aren't going to settle down soon, as AI-backed HBM demand is now projected to take up a significant chunk of global DRAM production capacity in the near future.

Samsung Electronics Executive Vice President Kim Taewoo has said that HBM will account for almost 30% of the DRAM industry's total wafer capacity in 2027. That will be a significant jump from the roughly 20% mark where it currently sits.

Kim further highlighted that both HBM and conventional DRAM fight for the same wafer capacity. Once manufacturers dedicate more wafer capacity to HBM, it will further restrict conventional DRAM supply, which will make those chips more expensive, and thus your consumer electronics devices like phones, tablets, notebooks, and more will get more expensive.

Samsung is working to considerably expand its HBM capacity as it seeks to take full advantage of the ongoing memory crisis. Samsung's average monthly HBM wafer input could rise by almost 40% from approximately 180,000 wafers to around 250,000 by 2027.

Memory makers like Samsung, SK Hynix, and Micron are already projecting continued supply constraints in 2027 and even 2028. This suggests that things may continue to get worse in the memory market before they get better.