Micron anticipates that the chip shortage will start to "improve gradually" by 2028

Sanjay Mehrotra, CEO of Micron, has projected that the global shortage of RAM and NAND, driven by AI advancements, is expected to persist until 2027, with gradual improvements anticipated in 2028.

During Micron's Q3 earnings call for the 2026 fiscal year, Mehrotra acknowledged the ongoing challenges, noting that the supply of memory will remain strained as demand increases. He mentioned that the situation hinges on the development of new chip manufacturing facilities on undeveloped land.

The prolonged construction timelines for fabs, workforce shortages, and regulatory issues contribute to the delay in addressing the supply deficit.

For the quarter ending May 28, 2026, Micron disclosed a substantial revenue of $41.46 billion, marking a 346% rise from the same period the previous year, while profits surged by nearly 1,398%.

As Micron capitalizes on the AI surge, the resultant shortages impact the global hardware sector significantly.

Insights from analysts and specialists, as reported by GamesIndustry.biz, highlight that major chip producers like Micron, Samsung, and Hynix have committed to significant contracts for equipping data centers to support AI activities, influencing the rise in DDR5 RAM and NAND prices.

The increasing component costs have led to higher prices for gaming consoles, with Valve announcing its Steam Machine mini-PC starting at $1,049, which exceeded anticipated pricing.

Joost van Dreunen, CEO of Aldora, commented to GI on this shift, noting that the prioritization of hyperscale clients by memory producers like Samsung, SK Hynix, and Micron has diminished the influence of consumer markets, resulting in elevated prices for gamers.