CONNECT WITH US
Tech

Tech

Team Group CEO warns memory crisis could reach point where 'even money can't buy goods' — will get worse next year, with 'no downward trend in price whatsoever'

Tom's Hardware logo

Published on

Add as a preferred source on Google
Team Group CEO warns memory crisis could reach point where 'even money can't buy goods' — will get worse next year, with 'no downward trend in price whatsoever'

Team Group CEO Chen Ching-wen said during the company’s November 2 earnings call that the memory chip shortage is expected to become worse from the end of 2026 until the end of 2027. BigGo Finance quoted Chen as saying that there is “no downward price trend whatsoever,” and that some purchasers could face a scenario “even money can’t buy goods.” He also noted that the spread between spot and contract prices for memory chips ranges from 30% to 50%, meaning short-term supply is significantly more expensive than long-term contracts.

  • AI data centers are swallowing the world's memory and storage supply
  • Samsung debuts three next-generation memory technologies for AI data centers
  • The future of DRAM: From DDR5 to future ICs
  • High-bandwidth memory roadmap
  • Inside the history of DRAM price-fixing lawsuits

"We have contracts but can't get enough volume, so we have to go to the spot market and pay a premium to grab supply," the Team Group chief said during the briefing. Contract prices for 16GB DDR5 chips climbed from $8.70 in October 2025 to $48 by September 2026. This is an increase of more than 550% in the past 12 months, and it seems that the price hikes are not letting up. He also estimated that supply and demand will not balance until the latter half of 2028 or perhaps even later. “How can prices fall when there’s nothing left?” said the CEO.

The Chairman also noted that even though CXMT and YMTC have increased their market share to almost 10%, most high-end DRAM and NAND flash chips still come from Kioxia, Micron, Samsung, and SK hynix.


Source link
Related Topics:Tech

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.