The memory crisis gripping the semiconductor industry is set to deepen rather than ease, according to Micron’s chief executive, who declared during a recent earnings call that shortages will persist and intensify through at least 2028. Sanjay Mehrotra confirmed that the company has already sold most of the memory it plans to produce next year, warning that buyers in 2027 and beyond will face sharply higher prices as demand continues to outstrip supply across the industry.
Micron is one of just three firms dominating the global memory market, alongside Samsung and SK Hynix. The trio have faced mounting scrutiny over their handling of the current pricing environment, with a pending US lawsuit accusing them of coordinating behavior that worsens shortages rather than responding to consumer demand. Mehrotra’s comments, delivered while discussing results for the firm’s 2026 financial year, offer one of the most candid admissions yet from industry leadership about how long consumers may expect to endure elevated costs.
A Market Headed Toward Greater Tightness
The executive painted a grim picture of the supply-demand balance heading into the coming years. “In calendar 2027 as well as 2028, we see demand exceeding supply,” Mehrotra said on the call. “In fact, we see greater tightness in the industry in 2027 and in 2028 versus 2026. Overall, supply-demand environment is only getting tighter. We do not have line of sight to when supply and demand will return to balance.”
The language was notable for its directness. Rather than offering reassurance that capacity expansions would eventually correct the imbalance, Mehrotra signaled that the three major manufacturers see no clear path back to equilibrium in the near term. Buyers planning upgrades or new PC builds should expect “much higher prices” next year compared with today, he added.
“In calendar 2027 as well as 2028, we see demand exceeding supply… Overall, supply-demand environment is only getting tighter. We do not have line of sight to when supply and demand will return to balance.”
Sanjay Mehrotra, CEO of Micron
The AI Demand Siphoning Consumer Memory
The root of the shortage lies in a dramatic shift in how memory is being allocated. As artificial intelligence firms have poured billions into building datacenters and training large models, demand for high-performance memory chips has surged to unprecedented levels. Micron and its rivals have increasingly directed their output toward these lucrative enterprise orders rather than the consumer market that powers everyday PCs, laptops, and gaming hardware.
The type of RAM that PC builders typically purchase has been severely constricted as a result. Factories turning attention toward filling AI datacenter orders leave less product available for regular devices, driving up costs across the board. This dynamic explains both Mehrotra’s comments about tightness and the frustration felt by consumers unable to afford upgrades or replacements.
The Center of the US Lawsuit
Micron’s refusal to pivot back toward consumer demand sits at the heart of an ongoing antitrust lawsuit. The three manufacturers are accused of not acting like genuine competitors should, with plaintiffs arguing that their collective decision to prioritize AI orders over unserved consumer needs amounts to de facto price-fixing. This is a practice all three companies have been fined for—or avoided fines on through cooperation with authorities during previous decades.
The legal theory suggests that the firms could reverse course and capture enormous profits by supplying more reasonably priced memory for standard devices, yet they instead choose to let shortages persist so prices remain elevated. Critics argue this behavior harms both individual buyers and the broader technology ecosystem that depends on affordable components.
Looking Ahead
For now, the chip makers can keep seeing nothing but gaudy profit margins while consumers grapple with rising costs. Anyone planning to upgrade or replace PC memory in the coming months should budget accordingly, as Mehrotra’s guidance suggests prices will continue climbing through 2027 and 2028. No official timeline for relief has been provided, and industry analysts warn that capacity additions may take years to fully address the structural imbalance between AI-driven demand and consumer supply.
As the lawsuit progresses and memory prices remain under a microscope, all eyes will stay on whether regulators intervene or whether market forces eventually restore balance. Until then, gamers and PC enthusiasts alike should prepare for a prolonged period of elevated costs across the hardware landscape.
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