SEOUL, Jan 30, 2026, 04:18 KST
- Samsung Electronics and SK Hynix warned that PC and smartphone manufacturers are finding it tough to secure DRAM, as chip production shifts focus toward AI-server memory.
- IDC and Counterpoint project a drop of at least 2% in global smartphone sales by 2026; IDC also forecasts the PC market will contract by at least 4.9%
- Samsung hinted at only modest capacity growth through 2026-27, while doubling down on higher-margin AI-focused products
Samsung Electronics and SK Hynix issued a warning Thursday: PC and smartphone makers are bracing for tighter DRAM supplies. These memory chips, essential in most consumer gadgets, are becoming scarcer as chipmakers shift focus to the more profitable AI-related products. 1
Two South Korean companies dominate roughly two-thirds of the DRAM market, with Apple listed as one of their clients. Rising prices and tight supply may squeeze margins throughout the consumer electronics sector and prompt last-minute changes to products.
Demand is already looking weak. IDC and Counterpoint now predict global smartphone sales will drop at least 2% in 2026. Meanwhile, IDC forecasts the PC market will shrink by at least 4.9% this year, following growth in 2025. 2
SK Hynix’s Park Joon Deok, head of DRAM marketing, told analysts that customers in PCs and mobile sectors are “having difficulties” securing memory supplies, as server demand puts pressure on the market. He made the comments following the company’s earnings call.
DRAM, or dynamic random access memory, serves as the “working” memory in smartphones and PCs. However, chipmakers are shifting factory capacity toward high-bandwidth memory (HBM)—stacked, high-speed chips designed for AI processors in data centres—which means less production of traditional DRAM.
Samsung and its rivals have taken a cautious approach to launching new production lines since the industry’s boom-and-bust cycle in 2017. The company has indicated that expansion will stay restrained through 2026 and 2027.
Some buyers are already reacting. SK Hynix reported that customers are tweaking their order sizes following a recent “surge” in memory-chip prices. Meanwhile, a few are eyeing lower memory specs for budget-focused devices.
Samsung’s handset division is bracing for impact. Samsung mobile exec Cho Seong labeled 2026 a “challenging year,” cautioning that if memory prices continue to rise, the already flat global smartphone shipment forecasts might be cut further.
Samsung said in separate earnings remarks that the broad memory shortage will continue “for the time being,” despite higher prices boosting its chip profits while dragging down its mobile and display units. The company reported 20 trillion won ($13.98 billion) in operating profit for the October-December quarter, with its chip division’s profit soaring to 16.4 trillion won. 3
Heungkuk Securities analyst Sohn In-joon expects memory prices to climb faster this quarter, putting more pressure on Samsung’s mobile division. Samsung co-CEO TM Roh called the shortage “unprecedented” and hinted that price hikes might be on the table.
The Financial Times revealed that major chipmakers are gearing up to increase capital spending amid rising AI-driven demand tightening supply. However, Samsung and SK Hynix have indicated their capacity expansions will remain modest this year and next. 4
The squeeze is intensifying competition in AI memory. SK Hynix, a major Nvidia supplier, dominated the HBM market last year, grabbing a 61% share. Samsung trailed with 19%, while Micron held 20%, Macquarie Equity Research reports.
SK Hynix is determined to maintain its “overwhelming” lead in next-gen HBM4 chips. Meanwhile, Samsung plans to ramp up the share of AI-focused products in its lineup, a move that might tighten supply of traditional DRAM for consumer gear.
A slump in phone and PC demand might ease orders and ease price hikes, but it would also squeeze consumer electronics companies already battling rising component costs. The real question is whether AI-server demand remains robust—and lasts long enough—to force memory makers into supply rationing through 2027.
