Team Group CEO Chen Ching-wen warned that the memory chip shortage could worsen from late 2026 through the end of 2027. Speaking on the company’s November 2 earnings call, he said there was “no downward price trend whatsoever” and cautioned that some buyers could reach a point where “even money can’t buy goods.”
Chen said the gap between spot and contract prices for memory chips ranges from 30% to 50%. Team Group has contracts but cannot secure enough volume, he explained, forcing the company to turn to the more expensive spot market to obtain supplies.
The price of contract 16GB DDR5 chips rose from $8.70 in October 2025 to $48 by September 2026, an increase of more than 550% over 12 months. Chen said supply and demand may not return to balance until the second half of 2028 or later, asking: “How can prices fall when there’s nothing left?”
Although Chinese manufacturers CXMT and YMTC have expanded their combined market share to almost 10%, Chen said most high-end DRAM and NAND flash chips still come from Kioxia, Micron, Samsung and SK Hynix. He added that prices for chips made by the Chinese companies continue to track the wider market. In his view, budget-component prices may not ease until 2029, while high-end chips are likely to remain in short supply.
The outlook differs from a forecast by Acer CEO Jason Chen, who expects component prices to turn around in the second half of 2027. His prediction is that shortages will persist for high-end parts, while mainstream components become more affordable. He also expects PC prices to rise by 5% to 20% through the end of this year, level off in the first half of 2027 and then decline.
Sources: Tom's Hardware.