Samsung plans to double AI-powered devices to 800 million by 2026 amid chip shortage

Samsung Targets 800 Million Devices With Galaxy AI Integration

Samsung Electronics has set an aggressive target to double its AI-enabled devices to 800 million by 2026, marking one of the most ambitious rollouts in consumer technology 1

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. In his first major interview since becoming co-CEO in November, TM Roh told Reuters that Samsung will "apply AI to all products, all functions, and all services as quickly as possible" 3

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. The South Korean tech giant had already deployed Galaxy AI features to approximately 400 million mobile products, including smartphones and tablets, by last year 4

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. This expansion represents a strategic play to reclaim the global smartphone crown from Apple while fending off pressure from Chinese manufacturers across multiple product categories.

Google's Gemini Powers Samsung's AI Strategy

The partnership between Samsung and Google's Gemini forms the backbone of this expansion, giving the search giant a significant distribution advantage in the AI race against OpenAI 2

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. Galaxy AI encompasses a suite of AI features powered by both Google's Gemini model and Samsung's own Bixby for different tasks 3

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. According to Roh, public awareness of Galaxy AI has skyrocketed from 30% to 80% in just one year, indicating rapid consumer adoption 4

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. While search remains the most used AI feature on phones, consumers frequently use generative AI editing and productivity tools for images, along with translation and summary features 3

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. The plan by the world's largest backer of Google's Android mobile platform gives Google a massive edge as it competes with OpenAI to attract consumer users to their AI models 4

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Memory Chip Shortage Threatens Price Increases

Ironically, while the global memory chip shortage boosts Samsung's semiconductor division profits, it simultaneously pressures margins on its smartphone business, the company's second-largest revenue source 3

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. ChatGPT maker OpenAI alone will consume approximately 40% of DRAM output from South Korean firms Samsung and SK Hynix, according to Reuters 1

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. This unprecedented demand has left Google and Microsoft scrambling to secure supply for 2026, potentially forcing consumers to accept devices with less RAM reminiscent of years past, such as 4GB smartphones and 8-12GB graphics cards 1

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. Roh acknowledged that "no company is immune to its impact," noting the crisis affects not only mobile phones but televisions and home appliances across Samsung's entire consumer electronics portfolio 3

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. While Roh did not rule out raising product prices, calling some impact "inevitable" from surging memory chip prices, he emphasized Samsung is working with partners on longer-term strategies to minimize consumer impact 5

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. Market researchers including IDC and Counterpoint predict the global smartphone market will shrink next year as the memory chip shortage threatens to drive up phone prices 3

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. Samsung shares closed 7.5% higher on Monday as investors anticipate a profit jump for the fourth quarter fueled by the chip shortage .