Micron expects memory demand to exceed supply in 2027 and 2028 as high-bandwidth memory production takes more manufacturing capacity, adding pressure to conventional DRAM availability across the industry.
On Sept. 30, Micron Chairman and CEO Sanjay Mehrotra said demand would remain ahead of supply in both years, with tighter conditions than in 2026. Micron put annual growth in industry DRAM bit shipments at approximately the low-20s percentage range for 2027 and 2028. It expects industry HBM bit shipments to grow faster than conventional DRAM through 2028. The outlook continues Micron’s earlier warning about memory supply limits through 2028.
Micron’s Q3 filing describes the manufacturing constraint behind the forecast: producing an equivalent amount of HBM requires more wafer capacity and clean-room area than conventional DRAM at the same technology node. The filing also said AI data-center growth is pushing memory and storage demand beyond the pace at which Micron and the wider industry can add supply.
Samsung Electronics said in July that it expected the memory market to remain undersupplied in the second half of 2026, despite some easing in mobile and PC demand. Its Memory Business reported a record quarter while citing limited capacity and industry-wide price increases. SK hynix said demand for AI and conventional memory was expanding, and separately reported that customer demand exceeded its supply capabilities. DRAM and NAND prices rose significantly quarter over quarter in Q2 2026, the company said.
Higher prices and sales of high-value products supported SK hynix’s performance, according to the company. Buyers face cost pressure: Advanced Micro Devices (AMD) said in a May filing that industry memory shortages had pushed prices higher and warned that supply limits or further increases could raise its production costs.
Micron expects more clean-room space to become available in late 2028 and beyond. SK hynix is scheduled to release Q3 results before 8 p.m. ET Oct. 27, followed by a conference call at 8 p.m. ET.
