The global memory shortage could become even more severe over the next few months, with TeamGroup warning that the worst period for DRAM supply could arrive between Q4 2026 and Q2 2027. During its earnings conference on November 2, the company revealed that major memory manufacturers, including Samsung, SK hynix, and Micron, have already sold out their 2027 production capacity and secured long-term supply agreements with customers. This is leaving fewer memory products available for other buyers, including third-party manufacturers and consumer memory brands.
TeamGroup also warned that having enough money may not guarantee access to memory products as supply becomes increasingly limited. The company indicated that while buyers can still purchase memory at higher prices, availability could eventually become a bigger problem than cost.
Although Chinese memory manufacturers CXMT and YMTC are supplying close to 10% of the global memory market, their combined production is not enough to meet current demand. TeamGroup expects the supply-demand situation to remain tight until the second half of 2028 or potentially later. The growing demand for AI infrastructure is also changing the company’s sales structure. Its B2B business now accounts for 64.6% of sales, while the consumer-focused B2C segment represents 35.4%. This is a major reversal from Q3 2025, when B2B contributed 24.6%, and B2C accounted for 75.4%. Demand from businesses developing AI servers is increasingly taking priority over traditional consumer memory purchases.
Memory prices have also climbed sharply. TeamGroup reported that the contract price of a 16 Gb DDR5 memory chip increased from approximately $8.70 in October 2025 to around $48 in September 2026. Spot market prices are even higher, carrying an additional 30% to 50% premium over contract pricing. This increase is putting further pressure on PC manufacturers, memory vendors, and consumers looking to upgrade their systems. With AI data centers requiring large quantities of high-capacity memory, traditional PC and gaming hardware buyers are facing increased competition for available supply.
TeamGroup also plans to expand its operations by opening a new facility in New Taipei City during Q1 2027. The company expects the facility to employ approximately 1,000 workers, with equipment installation scheduled for the same quarter. It reported consolidated Q3 revenue of NT$10.139 billion, equivalent to approximately $309.13 million. However, additional production facilities and manufacturing capacity may take time to improve overall market conditions.
With major memory manufacturers already committing their 2027 production to long-term customers, the next several quarters could bring further price increases and supply constraints. TeamGroup’s warning suggests that consumers may have to deal with expensive DDR5 memory and limited availability for considerably longer than expected, potentially until late 2028.
