The global memory shortage may persist for several more years, with no significant price reductions anticipated until late 2028 or beyond, according to Chen Ching, CEO of memory module manufacturer TeamGroup. This outlook stems from an earnings call where the company reported record quarterly revenue of NT$10.139 billion (approximately $308 million), a 34% increase from the previous quarter.
Chen suggests that the most severe phase of the shortage will likely occur between now and mid-2025, potentially reaching a point where available DRAM will be scarce regardless of price. "Right now you can still buy goods, they're just expensive," he stated. "In a little while, you may not be able to buy goods at all."
TeamGroup, like many in the industry, is currently prioritizing sales to data centers and enterprise clients who offer higher profit margins. This shift means that two-thirds of TeamGroup's business now serves other companies, a significant change from a previous distribution where the consumer market comprised the majority of sales.
Despite potential challenges in acquiring inventory, Chen indicated that TeamGroup's established vendor relationships will help secure supply, even if it means paying premium spot prices. However, he emphasized that overall supply remains the critical issue. The CEO forecasts that a balance between memory supply and demand is unlikely before the latter half of 2028, and could potentially extend even further. This sustained scarcity is expected to keep memory prices high, or potentially drive them even higher, as Chen rhetorically asks, "How can prices fall when there's nothing left?"