Former Samsung Chip Lead Suggests Memory Prices Could Decline Fast

While Samsung is seeing solid profits from booming AI memory demand, the market could see a big downturn in the next few years. The company’s standing advisor and former DS division head, Kyung Kye-hyun, predicted that memory chip prices could begin to drop starting in late 2027 or early 2028. This is mainly due to bold capacity expansions by Chinese chipmakers.

Samsung’s memory dominance may see new threats from China

Samsung posted its strongest financial performance ever in Q1 2026, with both revenue and profit reaching record highs. The company’s semiconductor profits jumped sharply, all thanks to strong demand for high-value AI memory products and rising memory chip prices. However, the current AI memory boom may not last forever.

“Chinese companies are aggressively expanding their production capacity (CAPA),” Kyung said during a keynote speech at the 285th NAEK Forum in Seoul. “There is a possibility that the market will change starting from the second half of next year or the first half of 2028, when memory supply surges.”

Chinese memory module makers are accelerating the release of new DDR5 chip-powered products. ChangXin Memory Technologies (CXMT), the country’s leading memory chipmaker, is reportedly playing a key role in this push. This could allow all the Chinese firms to catch up with industry leaders such as Samsung and SK Hynix.

Furthermore, Kyung said there is a risk that demand for memory chips could weaken after 2028. The reason is that big technology firms may reduce AI investment if returns on those investments decline. So, not only prices but also demand for memory chips could decline in the coming years. It will be interesting to see how Samsung responds to increasing competition from Chinese firms.

Kyung noted that South Korea accounts for 70% of the global DRAM market, thanks to its strong position in memory chips. The Korean semiconductor industry must now prepare for the post-super boom period.