{"id":2177298,"date":"2026-10-03T10:34:13","date_gmt":"2026-10-03T07:34:13","guid":{"rendered":"https:\/\/analyse.optim.biz\/?p=2177298"},"modified":"2026-10-03T10:34:13","modified_gmt":"2026-10-03T07:34:13","slug":"memory-shortages-set-to-persist-into-2028-warns-micron-ceo","status":"publish","type":"post","link":"https:\/\/analyse.optim.biz\/?p=2177298","title":{"rendered":"Memory shortages set to persist into 2028, warns Micron CEO"},"content":{"rendered":"<article class=\"article \" data-ads=\"true\" data-article-type=\"news\" data-article-group=\"news\" data-paywalled=\"false\" data-premium=\"false\" data-sponsored=\"false\" data-type=\"article\">\n<header class=\"article_header\" data-component=\"article-header\">\n<div class=\"breadcrumbs\">\n<nav class=\"nav_breadcrumbs\" data-component=\"nav-breadcrumbs\" aria-label=\"Breadcrumb\">\n<ul class=\"nav-links\">\n<li>\n                <a href=\"https:\/\/www.eurogamer.net\/\" data-active=\"false\"><br \/>\n                      Home<br \/>\n                <\/a>\n            <\/li>\n<li>\n                <a href=\"https:\/\/www.eurogamer.net\/news\" data-active=\"false\"><br \/>\n                      News<br \/>\n                <\/a>\n            <\/li>\n<\/ul>\n<\/nav><\/div>\n<div class=\"headline_details\" id=\"main-content\">\n<h1 class=\"title\">Memory shortages set to persist into 2028, warns Micron CEO<\/h1>\n<p class=\"strapline\">Memory maker posts record earnings as AI demand squeezes supplies.<\/p>\n<\/p><\/div>\n<div class=\"headline_asset\">\n<figure class=\"headline_image_wrapper\">\n<p>        <img fetchpriority=\"high\" decoding=\"async\" class=\"headline_image\" src=\"https:\/\/assetsio.gnwcdn.com\/ps5-ram-calendar.jpg?width=570&amp;quality=85&amp;format=jpg&amp;dpr=3&amp;auto=webp\" alt=\"A PS5 Pro in between a calendar and stacks of RAM\" loading=\"eager\" data-uri=\"ps5-ram-calendar.jpg\" data-lightbox width=\"570\" height=\"321\"><figcaption>\n          <span class=\"attribution\">Image credit: <cite>Eurogamer<\/cite><\/span><br \/>\n        <\/figcaption><\/figure>\n<\/p><\/div>\n<div class=\"metadata\">\n<div class=\"avatar\">\n<p>    <img loading=\"lazy\" decoding=\"async\" alt=\"Vikki Blake avatar\" src=\"https:\/\/assetsio.gnwcdn.com\/1533038852.jpg?width=2048&amp;height=2048&amp;fit=bounds&amp;quality=85&amp;format=jpg&amp;auto=webp\" style=\"aspect-ratio: 1\" width=\"180\" height=\"179\"><\/p>\n<p>  <img alt=\"Vikki Blake avatar\" data-autosize=\"crop_lossy\" data-uri=\"1533038852.jpg\" loading=\"lazy\" style=\"aspect-ratio: 1\" width=\"180\" height=\"179\">\n<\/div>\n<div class=\"text\">\n<div class=\"byline\">\n                  <span class=\"article_type\" data-slug=\"news\"><br \/>\n                    News<br \/>\n                  <\/span><\/p>\n<p><span class=\"by\">by<\/span> <span class=\"author\"><a href=\"https:\/\/www.eurogamer.net\/authors\/vikki-blake\">Vikki Blake<\/a><\/span>                    <span class=\"job_title\"><br \/>\n                      Contributor<br \/>\n                    <\/span>\n            <\/div>\n<div class=\"published_at\">\n<p>Published on   <time datetime=\"2026-10-03T10:34:13+00:00\" data-auto-time-zone=\"true\" data-year=\"numeric\" data-month=\"short\" data-day=\"numeric\" data-hour=\"numeric\" data-minute=\"numeric\">Oct. 3, 2026, 10:34 a.m.<\/time>\n              <\/div>\n<\/p><\/div>\n<div class=\"header_actions\">\n<p>  <a class=\"button outline wide preferred_source_button\" data-component=\"preferred-source-button\" href=\"https:\/\/www.google.com\/preferences\/source?q=eurogamer.net\" rel=\"nofollow noopener\" target=\"_blank\"><br \/>\n    <span class=\"logo\" aria-hidden=\"true\"><\/span><br \/>\nPrioritise us on Google  <\/a>\n          <\/div>\n<\/p><\/div>\n<\/header>\n<div class=\"article_body\" data-component=\"article-content\">\n<div class=\"article_body_content article-styling\" data-autopogo>\n<p>Micron has warned that global RAM shortages show no sign of easing, telling investors on its earnings call that it has already sold most of next year&#8217;s production.<\/p>\n<p>As reported by <a href=\"https:\/\/www.theregister.com\/2026\/10\/01\/micron_earnings\/\">The Register<\/a>, CEO and chair Sanjay Mehrotra suggested customers should brace for prices well above what they paid in 2026, adding demand would keep outstripping supply through 2027 and into 2028, and calling the industry&#8217;s supply-demand balance &#8220;only getting tighter&#8221;.<\/p>\n<p>The CEO also admitted that Micron does &#8220;not have line of sight to when supply and demand will return to balance&#8221;.<\/p>\n<p>As most of the capacity is booked for the high-bandwidth memory (HBM) needed for AI datacentres, the big three memory manufacturers &#8211; which includes Samsung &#8211; have very little dedicated to consumer-grade memory, which caused their prices to shoot up.<\/p>\n<p><span class=\"injection_placeholder\" data-position=\"1\"><\/span><\/p>\n<p>That has, in turn, <a href=\"https:\/\/www.eurogamer.net\/ram-prices-are-soaring-what-does-it-mean-for-gaming\">pushed up the prices of pretty much every consumer electronic device that uses these chips<\/a>, including game consoles like the <a href=\"https:\/\/www.eurogamer.net\/sony-announces-major-price-hikes-for-ps5-ps5-pro-and-portal\">PlayStation 5<\/a>, <a href=\"https:\/\/www.eurogamer.net\/xbox-major-price-increases\">Xbox Series X\/S<\/a> and <a href=\"https:\/\/www.eurogamer.net\/nintendo-switch-2-price-increase-may-2025\">Switch 2<\/a> &#8211; all of which have gone up in price <a href=\"https:\/\/www.eurogamer.net\/us-xbox-fans-hit-with-another-hardware-price-hike-just-four-months-after-the-last-increase\">several times<\/a> in <a href=\"https:\/\/www.eurogamer.net\/sony-raises-price-of-ps5-ps5-digital-and-ps5-pro-in-the-us\">some cases<\/a>. Valve&#8217;s Steam Machine also <a href=\"https:\/\/www.eurogamer.net\/valve-steam-machine-price-availability-reaction\">launched at a much higher price than Valve expected<\/a>, and the company <a href=\"https:\/\/www.eurogamer.net\/steam-machine-valve-component-price-increase\">hinted it may even have to raise prices again<\/a>.<\/p>\n<p>The company plans to bring new factories online in 2028, backed by $25 billion in planned capex for the first half of its new financial year, but executives cautioned that the extra capacity won&#8217;t bring immediate relief on price or availability.<\/p>\n<p>Mehrotra explained that HBM is growing in demand faster than the DRAM used in servers, and said Micron is working to lift its margins on HBM, which currently trails DRAM in profitability.<\/p>\n<p>That said, Micron&#8217;s cloud memory unit, which covers HBM, posted an 83 per cent gross margin in Q4, up from 59 per cent a year earlier, while its core datacenter business, selling more DRAM, hit 90 per cent, up from 41 per cent. Datacenter SSD sales almost hit $10 billion for the quarter, over 1,000 per cent higher year-on-year.<\/p>\n<p><span class=\"injection_placeholder\" data-position=\"2\"><\/span><\/p>\n<p>The company also highlighted its work with Nvidia on NV-HBM, billed as the industry&#8217;s first custom HBM4E implementation for next-generation GPUs and NVLink Fusion platforms, and said AI-driven demand for context memory storage is widening the market for its NAND-based SSDs.<\/p>\n<p>Samsung, one of the largest manufacturers of memory and storage in the world, <a href=\"https:\/\/www.eurogamer.net\/samsung-memory-shortage-2027-2028-q2-earnings\">also recently delivered bad news<\/a> for anyone hoping the global component shortages will ease up soon, revealing in an earnings call that it expects the crisis to continue getting worse into next year.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/article>\n<div class=\"article_body\" data-component=\"article-content\">\n<div class=\"article_body_content article-styling\" data-autopogo>\n<p>Micron has warned that global RAM shortages show no sign of easing, telling investors on its earnings call that it has already sold most of next year&#8217;s production.<\/p>\n<p>As reported by <a href=\"https:\/\/www.theregister.com\/2026\/10\/01\/micron_earnings\/\">The Register<\/a>, CEO and chair Sanjay Mehrotra suggested customers should brace for prices well above what they paid in 2026, adding demand would keep outstripping supply through 2027 and into 2028, and calling the industry&#8217;s supply-demand balance &#8220;only getting tighter&#8221;.<\/p>\n<p>The CEO also admitted that Micron does &#8220;not have line of sight to when supply and demand will return to balance&#8221;.<\/p>\n<p>As most of the capacity is booked for the high-bandwidth memory (HBM) needed for AI datacentres, the big three memory manufacturers &#8211; which includes Samsung &#8211; have very little dedicated to consumer-grade memory, which caused their prices to shoot up.<\/p>\n<p><span class=\"injection_placeholder\" data-position=\"1\"><\/span><\/p>\n<p>That has, in turn, <a href=\"https:\/\/www.eurogamer.net\/ram-prices-are-soaring-what-does-it-mean-for-gaming\">pushed up the prices of pretty much every consumer electronic device that uses these chips<\/a>, including game consoles like the <a href=\"https:\/\/www.eurogamer.net\/sony-announces-major-price-hikes-for-ps5-ps5-pro-and-portal\">PlayStation 5<\/a>, <a href=\"https:\/\/www.eurogamer.net\/xbox-major-price-increases\">Xbox Series X\/S<\/a> and <a href=\"https:\/\/www.eurogamer.net\/nintendo-switch-2-price-increase-may-2025\">Switch 2<\/a> &#8211; all of which have gone up in price <a href=\"https:\/\/www.eurogamer.net\/us-xbox-fans-hit-with-another-hardware-price-hike-just-four-months-after-the-last-increase\">several times<\/a> in <a href=\"https:\/\/www.eurogamer.net\/sony-raises-price-of-ps5-ps5-digital-and-ps5-pro-in-the-us\">some cases<\/a>. Valve&#8217;s Steam Machine also <a href=\"https:\/\/www.eurogamer.net\/valve-steam-machine-price-availability-reaction\">launched at a much higher price than Valve expected<\/a>, and the company <a href=\"https:\/\/www.eurogamer.net\/steam-machine-valve-component-price-increase\">hinted it may even have to raise prices again<\/a>.<\/p>\n<p>The company plans to bring new factories online in 2028, backed by $25 billion in planned capex for the first half of its new financial year, but executives cautioned that the extra capacity won&#8217;t bring immediate relief on price or availability.<\/p>\n<p>Mehrotra explained that HBM is growing in demand faster than the DRAM used in servers, and said Micron is working to lift its margins on HBM, which currently trails DRAM in profitability.<\/p>\n<p>That said, Micron&#8217;s cloud memory unit, which covers HBM, posted an 83 per cent gross margin in Q4, up from 59 per cent a year earlier, while its core datacenter business, selling more DRAM, hit 90 per cent, up from 41 per cent. Datacenter SSD sales almost hit $10 billion for the quarter, over 1,000 per cent higher year-on-year.<\/p>\n<p><span class=\"injection_placeholder\" data-position=\"2\"><\/span><\/p>\n<p>The company also highlighted its work with Nvidia on NV-HBM, billed as the industry&#8217;s first custom HBM4E implementation for next-generation GPUs and NVLink Fusion platforms, and said AI-driven demand for context memory storage is widening the market for its NAND-based SSDs.<\/p>\n<p>Samsung, one of the largest manufacturers of memory and storage in the world, <a href=\"https:\/\/www.eurogamer.net\/samsung-memory-shortage-2027-2028-q2-earnings\">also recently delivered bad news<\/a> for anyone hoping the global component shortages will ease up soon, revealing in an earnings call that it expects the crisis to continue getting worse into next year.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Home News Memory shortages set to persist into 2028, warns Micron CEO Memory maker posts record earnings as AI demand squeezes supplies. Image credit: Eurogamer News by Vikki Blake Contributor Published on Oct. 3, 2026, 10:34 a.m. Prioritise us on Google Micron has warned that global RAM shortages show no sign of easing, telling investors [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[226,253],"class_list":["post-2177298","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-crawlmanager","tag-eurogamer-net"],"_links":{"self":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts\/2177298","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2177298"}],"version-history":[{"count":0,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts\/2177298\/revisions"}],"wp:attachment":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2177298"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2177298"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2177298"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}