Samsung Electronics forecast a worsening chip shortage this year driven by the AI boom, with strong memory demand benefitting its mainstay chip business but creating headwinds for its other units like smartphones and displays. However, it warned that surging memory chip prices are raising costs in its smartphone and display businesses, which count Apple and Samsung as customers, sending its shares down 1.2% after a sharp rally this year. A significant shortage of memory products across the board is expected to continue for the time being“A significant shortage of memory products across the board is expected to continue for the time being,” Kim Jaejune, a Samsung memory chip business executive, told analysts on its post-earnings call. Samsung co-CEO TM Roh described the acute chip shortage as “unprecedented” in an interview with Reuters, adding that he did not rule out raising prices. Samsung’s display business profit more than doubled to ₩2-trillion in the fourth quarter on robust sales of its major customer Apple’s iPhone 17 series.