Samsung, SK Hynix, and Micron Pre-Allocate DRAM and HBM Capacity Through 2027
The three major memory manufacturers—Samsung, SK Hynix, and Micron—have reportedly completed negotiations and sold out their general DRAM and HBM capacity through 2027. Driven by severe shortages, downstream clients are actively making advance payments to secure their supply. This pre-allocation highlights the intense demand from the AI and high-performance computing (HPC) sectors, which are prioritizing memory supply. Consequently, smartphone and PC manufacturers will face significantly reduced DRAM allocations, potentially leading to consumer electronics shortages or price hikes. The three manufacturers are estimated to meet only 60% to 70% of downstream customer demand. Additionally, the production of HBM consumes significantly more wafer capacity than standard DRAM, further compressing the supply of general-purpose memory.
## BACKGROUND
High Bandwidth Memory (HBM) is a high-performance 3D-stacked DRAM technology designed to deliver high data transfer speeds and low power consumption for AI and graphics accelerators. Because HBM manufacturing requires a much higher wafer-to-memory ratio compared to standard DDR5, ramping up HBM production directly reduces the industry's capacity to produce general-purpose DRAM.