adminThe chip shortage affecting memory components is expected to continue through 2027, according to Micron CEO Sanjay Mehrotra. He told investors that supply may “improve gradually” in 2028, but the company cannot yet say when memory production will catch up with rising demand. The outlook matters to device makers and buyers because RAM and NAND are used across computers, consoles, and storage products.
Image credit: Marta Branco
Chip shortage expected to ease gradually in 2028
Speaking during Micron’s Q3 earnings call for its 2026 financial year, Mehrotra said the imbalance between memory supply and demand is likely to remain in place through 2027. Although he expects conditions to improve the following year, he said Micron has limited visibility into when available memory will meet growing demand.
For consumers, a gradual improvement does not necessarily mean prices or product availability will return to earlier levels at a specific point in 2028. Anyone planning a PC or storage upgrade should compare current prices and check component compatibility before buying, rather than relying on a particular date for shortages to end.
Why memory production takes time to expand
Increasing supply depends partly on expanding semiconductor manufacturing capacity, including greenfield factories built on previously undeveloped sites. These projects take considerable time to plan and construct. Mehrotra also pointed to a shortage of qualified workers and regulatory requirements as factors that can slow the pace of expansion.
That means additional investment does not translate immediately into more memory chips. Capacity has to be built and brought into operation while demand continues to change. As a result, the supply gap could remain a concern for hardware companies even as new manufacturing facilities are developed.
AI demand and the effect on hardware prices
Micron reported revenue of $41.46 billion for the three months ending May 28, 2026, a 346% increase year over year. Its profit for the quarter rose by 1,398%. The figures came as demand for memory used in AI infrastructure grew, including demand from companies building and operating data centers.
Micron, Samsung, and SK Hynix have signed large contracts to supply data-center operators, according to industry analysis. With companies investing heavily in AI infrastructure, demand for DDR5 RAM and NAND—flash memory commonly used in SSDs—has contributed to sharp price increases in those components.
Higher component costs can affect the price of finished hardware, including game consoles and compact PCs. After Valve disclosed that its Steam Machine mini-PC would start at $1,049, Aldora CEO Joost van Dreunen said major component manufacturers were prioritizing hyperscale data-center customers willing to pay a premium. He also argued that this shift leaves consumer hardware buyers with less influence over supply and pricing.
What the chip shortage means for buyers
People considering a new PC, console, or SSD can make a more informed decision by checking several factors:
- Compare prices across compatible products, since memory costs can vary by capacity and specification.
- Check whether an upgrade is necessary now or whether an existing device still meets your needs.
- When budgeting for a new system, account for the total cost rather than looking at the memory component alone.
These steps cannot eliminate market-driven price changes, but they can help buyers avoid paying for capacity or features they do not need. The chip shortage is not expected to disappear quickly: Micron’s current outlook points to continued pressure through 2027 and only gradual improvement in 2028, with no confirmed date for supply to catch up with demand.
