Buckle Up, Memory Shortages Are Reportedly Set To Get Worse In 2027

The memory shortage crisis is expected to worsen in 2027 and extend through 2028, according to Micron Technology CEO Sanjay Mehrotra. In an earnings call covering the company’s 2026 financial year results, Mehrotra revealed that demand significantly exceeds supply and stated that consumers should expect “much higher prices” for RAM in 2027 compared to 2026.

Mehrotra noted that Micron has already sold most of the memory it will manufacture in 2027, indicating that the supply-demand environment is “only getting tighter.” The shortage has been partly driven by demand from AI datacenters competing with traditional consumer and gaming markets for limited memory production capacity.

The crisis has already impacted the gaming industry, with Xbox leadership previously acknowledging a broader “component crisis” affecting console manufacturing and pricing. Xbox executives have emphasized the need to innovate on affordability and efficiency to address the supply constraints that threaten next-generation console launches.

The memory shortage is not limited to Micron, as Samsung and SK Hynix—the other two major memory manufacturers—are also involved in the market dynamics. The situation has drawn regulatory scrutiny, with a US lawsuit against the three companies alleging price-fixing related to the RAM crisis. The expected continuation of shortages into 2028 suggests the industry faces sustained pressure on production costs and consumer pricing for years to come.

Sources