Samsung Electronics said Thursday that memory supply shortages will persist through 2028, even as the company expands its production facilities.
The company cited two compounding factors: the lengthy construction time required to build new fabs, and growing lead times for ordering and receiving the semiconductor equipment needed to run them.
Kim Jae-jun, executive vice president and head of Samsung Electronics' memory strategy and marketing division, said during the company's third-quarter earnings conference call Thursday that "given the long lead time from new fab construction to wafer production, it appears difficult for capex increases in 2027 to make a meaningful contribution to production in 2028."
Kim added that equipment order lead times have also been lengthening, making it harder to secure machinery on schedule. "This could act as a constraint on suppliers' capex ramp-up," Kim said.
Kim further said that HBM4E and HBM5 — the products set to be ramped up as key next-generation offerings — will have larger die sizes than their predecessors and significantly more metal process layers. "Physical supply constraints therefore appear unavoidable," Kim said.
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