Rising memory chip prices a global concern, will continue efforts to minimise impact: Samsung

San Francisco (PTI): South Korean consumer electronics maker Samsung said rising prices of memory chip is a "global issue" that is impacting the industry, but expressed confidence in its ability to manage supply through strategic partnerships.

The company, which is itself one of the major manufacturers of memory chips globally, is monitoring market dynamics very carefully, said Samsung Southwest Asia President and CEO JB Park.

It expects to remain relatively well-positioned on the supply side and will continue efforts to minimise the impact on its business by responding flexibly to market changes, he said here while responding to a PTI query in a media roundtable on the sidelines of a launch event of its flagship smartphone Galaxy S26 series.

"Rising memory semiconductor prices are a global issue and impacting the broader industry. We expect to be relatively well-positioned on the supply side through strategic partnerships and will continue efforts to minimise the impact on our business by responding flexibly to market changes," said Park.

However, he also acknowledged "the shortage of memory chips will go on till 2027".

There is a lot of surge in the AI industry (for data centre), which has "stuck the majority of supply in our fab", Park added.

Several companies, including Samsung, are facing a severe memory chip shortage, which is driven primarily by explosive AI data centre demand outstripping supply for all memory types (DRAM, HBM, and NAND).

The shortage is already impacting prices of consumer products such as budget mobile handsets, laptops, LED televisions and other appliances.

These categories are witnessing price hikes and stock shortages as manufacturers struggle to secure adequate supplies of memory components.

According to Park, Samsung is monitoring the situation, and as a "responsible" entity is taking steps that "will be needed to supply abundant memory chips to the Indian market".

India is a strategic market of the South Korean giant, which contributes around 10 per cent of its global revenues.

The South Korean electronics major, which is among the world's largest producers of memory chips, smartphones, and consumer electronics, said it will continue to align its product strategy with innovation-led growth while navigating challenges in the global semiconductor market.

It will continue to prioritise supply for multiple consumer devices for the India market, including smartphones and televisions, which require significant memory chipsets.

"We prioritise giving what is the best product portfolio that will be applicable for the Indian market. So we adjust dynamically to the supply and demand," Park said, adding, "We remain committed to advancing our products in line with this approach".

Samsung last week here, launched its flagship Galaxy S26 series smartphone, its third AI smartphone, which, according to the company, will provide the most intuitive and proactive AI experience to its users.

Like its predecessor, the S26 series will also be manufactured by Samsung at its Noida plant in India, said Park.

Moreover, its Bengaluru-based R&D centre, the biggest outside South Korea, has contributed significantly to developing this latest series, he added.

"Galaxy S26 marks the beginning of a new direction for us with agentic AI. I am confident that it will get a lot of love in India," he said.

According to Park, India has the largest youth population in the world, with 65 per cent people under 35 years of age.

"The everyday usage of AI by Indian consumers is among the highest in the World! This is not surprising because Indian consumers are extremely receptive to new technology," he said.