GigaDevice: Memory Prices Still in Upcycle, DRAM Supply Tightness Unlikely to Ease Significantly in 2027

GigaDevice held its first‑half 2026 performance briefing on September 1. The company's management clearly stated that DRAM, NOR Flash, and SLC NAND Flash products remain in a relatively favorable upcycle, and this trend is expected to continue through 2027.

First-Half Performance Shows Volume and Price Growth, Capacity Expansion Steadily Progressing

In terms of operating performance, GigaDevice's DRAM business delivered volume‑and‑price growth in the first half of the year, registering sharp year‑over‑year revenue growth and a notable gross‑margin improvement. DDR4 has achieved full‑scale mass production across diverse niche application markets. NOR Flash prices rose moderately, registering substantial year‑over‑year growth in both revenue and sales volume for industrial and automotive applications. SLC NAND Flash also saw growth in both volume and price.

Regarding capacity assurance, GigaDevice is simultaneously boosting supply across its product lines. He Wei, Vice Chairman and General Manager of GigaDevice, stated that as DRAM capacity suppliers advance capacity expansion and the company's demand for DRAM foundry services continues to grow, GigaDevice's DRAM capacity is expected to rise steadily over the next few years. In addition, NOR Flash capacity is set for notable growth this year. In contrast, ramping capacity for SLC NAND Flash poses greater challenges; the company is collaborating with suppliers to ramp capacity incrementally.

Memory Price Increases to Continue at a Moderating Pace, Near‑Term Supply Tightness Persists

Regarding memory price trends, Xie Feiwang, Secretary to the Board of Directors of GigaDevice, stated that DRAM prices have been rising for several consecutive quarters. As of the end of the second quarter, niche DRAM prices remained on an upward trajectory. The uptrend is expected to continue in the second half of the year but at a more moderate pace. Looking ahead to 2027, given limited new‑capacity ramp‑ups across the DRAM industry, supply tightness is not expected to ease significantly, and the industry's strong cycle is likely to persist, with product prices expected to fluctuate at elevated levels.

Flash products also remain in a strong cycle. NOR Flash prices are expected to continue their moderate upward trend, with higher‑capacity products seeing relatively more pronounced increases. The supply shortage for SLC NAND Flash has not yet significantly eased, and the company expects this favorable cycle to last through at least full‑year 2027.

However, Sun Guijing, Deputy General Manager and Chief Financial Officer of GigaDevice, also pointed out that while memory chip prices are poised for further moderate increases, supply‑side costs are also rising, and the company's gross margins will gradually level off.

Customized Memory Unlocks New AI‑Driven Growth Opportunities, Qingyun Technology Achieves Key Breakthroughs

Beyond traditional memory, customized memory is becoming a core strategic direction for GigaDevice to tap into the AI market. The company's controlled subsidiary, Qingyun Technology, has secured key customer wins and project breakthroughs in areas such as AI smartphones, AI PCs, and robotics. Related businesses are expected to generate meaningful revenue in the current year.

GigaDevice holds a positive outlook for its customized‑memory business in 2027. Several end‑side AI customer projects are moving into mass production, which is expected to fuel relatively fast growth for this business segment.