Samsung Anticipates Decline in Memory Demand Starting 2028 Amid AI Market Shift

• March 16, 2026

Samsung Electronics, the South Korean technology giant, is forecasting a downturn in global memory demand by 2028. The company, known as the world’s largest memory manufacturer, is planning ahead as the current surge driven by artificial intelligence (AI) technologies is expected to taper off in the coming years.

For several decades, Samsung has held a dominant presence in the memory production sector, which includes various types of chips essential for computing tasks. However, in the high-bandwidth memory (HBM) segment—a critical component used in AI and high-performance computing applications—Samsung has recently ceded its leading position to rival SK hynix.

Strategic Response to Future Market Changes

Industry watchers note that memory demand has been strongly influenced by the rapid adoption of AI, fueling growth that has arguably outpaced many other segments in technology. Samsung’s extensive experience in this fiercely competitive market has led it to anticipate that this growth will not be indefinite. Based on the company’s assessments, a decline is expected to begin around 2028, signaling a cyclical shift away from the current buoyant environment.

In preparation for this anticipated slowdown, Samsung is reportedly taking steps to reinforce its manufacturing and business strategies. While specific details about these preparations remain undisclosed, it reflects a proactive posture in managing supply and refining product portfolios to maintain resilience in a fluctuating market.

The memory market’s evolution is also shaped by changing demands in data centers, mobile devices, and emerging AI applications, meaning that manufacturers who can adapt swiftly hold a competitive edge. Samsung’s foresight into the potential demand contraction could position it favorably to navigate through the next phase of the semiconductor industry’s cycle.

This forward-looking approach underscores the challenges versus opportunities that memory producers face as the AI sector matures. Although the growth rate in memory consumption linked to AI and high-performance computing is expected to normalize, the sector remains vital to technological advancement globally.

As Samsung and its competitors adjust their strategies, the memory market’s dynamics will continue to evolve, reflecting broader trends in technology adoption and innovation. The shift anticipated in 2028 will mark a significant moment for the industry and may influence investment, production, and development priorities across the sector.

Samsung expects memory demand to contract beginning in 2028 as the AI boom slows, prompting strategic preparations for the market shift.