A prolonged global shortage of memory and SSD storage is shaping up to be one of the biggest hardware headaches of the decade. According to comments from Silicon Motion’s CEO, the crunch affecting DRAM (system memory) and NAND flash (the storage used in SSDs) may not meaningfully ease until 2028, largely because demand from AI-focused companies keeps accelerating faster than the industry can add new supply.
Right now, the situation is already tight for both enterprise customers and everyday buyers. Manufacturers are planning new production capacity and factory expansions, but these projects take time. Even once approved and funded, a modern memory fabrication facility typically needs years to build, equip, qualify, and ramp to high-volume output. The earliest meaningful expansion timelines are being discussed around 2027, with volume production only arriving in late 2027 or early 2028.
The big issue is that upcoming capacity is expected to be heavily aimed at meeting AI-era needs. Data centers powering AI services require enormous amounts of both DRAM and NAND. And as new, extremely power-hungry “gigawatt-scale” data centers come online over the next few years, total demand is expected to surge even more.
Silicon Motion’s leadership also points to a shift in AI spending that’s intensifying pressure on the market. The industry focus is moving from AI training to AI inference, and inference still consumes vast amounts of memory and fast storage—especially when deployed at scale to serve real users, around the clock. That creates simultaneous growth in demand for both DRAM and NAND flash, and when supply is constrained, it’s difficult for the market to rebalance quickly.
By current estimates discussed in the report, DRAM and NAND suppliers can only meet roughly 60% to 70% of total demand at today’s production levels. That gap matters because it doesn’t just impact data centers; it ripples across the entire supply chain. When large buyers lock in supply, everyone else is left competing for a smaller pool of components.
One reason the shortage could last longer than earlier expectations is the way major AI players are securing inventory. With supply tight, they are increasingly using long-term contracts and even prepayments to reserve future DRAM and NAND output. This kind of demand “locking” can reduce the flexibility of the market, making it tougher for other industries—and consumers—to access parts at stable prices.
The timeline challenges are also straightforward: building a new production facility and reaching volume production can take two to three years, and even after that, product delivery lead times can extend another year or more. That means there’s no quick fix, even if every manufacturer tries to expand at once.
For shoppers and PC builders, the most immediate impact is pricing. Silicon Motion expects memory and SSD prices to keep rising through the second half of this year. As component costs climb, hardware makers face difficult decisions—some products become less profitable, pricing becomes harder to keep competitive, and certain consumer models may be discontinued if they no longer make economic sense.
There was early hope that additional supply from Chinese manufacturers could relieve global pressure, but domestic demand inside China has also risen significantly, adding strain rather than creating an easy surplus for the rest of the market.
Meanwhile, the overall outlook remains tense. One major manufacturer has suggested shortages could actually be worse in 2027 than in 2026, reinforcing the idea that this isn’t a short-lived spike. If these projections hold, buyers should brace for an extended period where DRAM prices, SSD prices, and broader PC and server component pricing remain under upward pressure.
In short, the memory and SSD shortage isn’t just lingering—it may be entering a multi-year phase driven by AI expansion, long factory ramp times, and aggressive supply reservations by the biggest buyers. If you’re planning an upgrade or a new build, the next few years may require more careful timing, price watching, and flexibility on capacity choices than the market has demanded in a long time.
