Samsung Electronics Memory Supply Shortage Forecast to Hit Unprecedented Levels, KB Securities Says

According to KB Securities on July 13, Samsung Electronics' memory supply shortage next year will reach unprecedented levels, with new production capacity essentially flat while big tech firms begin long-term supply agreements (LTA). KB Securities' Kim Dong-won said general customers will face a "cliff-like" shortage as new memory output prioritizes LTA-contracted big tech companies.

Meanwhile, Meta's plan to expand AI infrastructure investment—adding 7 gigawatts (GW) next year to reach a total 14GW AI computing capacity—is expected to alleviate concerns about semiconductor cyclicality. KB Securities maintained a buy rating on Samsung Electronics with a 600,000 won price target.