Team Group Chen Ching-wen: Memory Prices to Keep Rising in Q4 but at a Slower Pace, Real Shortage May Hit in 1H27

Chen Ching-wen, general manager of Team Group, said the memory market remains persistently tight in terms of supply, with prices set to rise further in the fourth quarter, though the pace of increases will moderate compared with the past eight to nine months, shifting from monthly jumps of 15% to 20% to quarterly gains of about 20% to 30%. On the demand side, Chen believes DRAM demand is currently more solid than NAND Flash, with the DRAM shortfall being very pronounced and massive while NAND Flash also faces a shortage, but it is relatively less severe. On the supply side, capacity at memory manufacturers has already been largely locked up by long-term agreements, and the pace of expansion at new plants cannot keep up with demand. Chen said the industry has recently been receiving notices from upstream manufacturers clearly signaling that supply releases in 2027 will be sharply tightened, with capacity at those manufacturers almost fully booked through 2027-2028. It is predicted that the truly severe shortage may hit in the first half of 2027, when the volume of goods available externally will be very limited. DRAM is also Team Group's main product line, accounting for about 75% to 80% of its business, and its operating strategy for next year will focus on safety stock and customer screening.