Memory chip makers SK Hynix, Micron and Samsung have reported significant revenue increases as demand for AI‑related hardware drives up prices for DRAM, HBM, DDR5 and NAND flash.

The companies are investing hundreds of billions of dollars to build new fabrication capacity, a process that can take three years or more before production begins. In June, South Korean President Lee Jae Myung announced a $576 billion plan to bolster chip production and secure AI supply chains, and Micron has pledged up to $3 billion to strengthen the US semiconductor supply chain.

High demand has created shortages and pushed prices higher across consumer electronics and AI infrastructure, with IDC warning that price relief may not arrive before 2028. Memory prices are expected to stay elevated until new capacity is operational.

The industry must balance the need for expanded capacity with the risk that AI demand may fall short, potentially leading to a price decline that could affect the financial health of memory manufacturers.