DRAM Demand and Prices Surge, Boosting Taiwanese Firms

The rapid expansion of the AI market is accelerating the demand for DRAM, pushing bit growth to new heights. As leading memory chip manufacturers—Samsung, SK Hynix, and Micron—shift their production capacity toward high-bandwidth memory (HBM), the supply of niche memory, DDR4, and DDR5 has become constrained. This supply tightening is driving DRAM prices upward, creating a significant market opportunity for industry players such as Winbond (2344), Nanya Technology (2408), ADATA (3260), and Team Group (4967).

Industry experts note that the continued transition of standard DRAM production to HBM and server-grade DRAM has led to a supply gap in the consumer market. As a result, the DRAM sector is expected to rebound in the second half of the year.

Recent trends indicate a recovery in DRAM spot prices, with both niche memory and mainstream DDR5 prices showing an upward trajectory. After several months of declines, current DRAM spot prices have returned to levels seen at the end of Q3 last year. With sustained growth in demand, prices are projected to continue rising.

The upward trend in DRAM pricing, coupled with the increasing bit consumption driven by AI applications, is benefiting Winbond's niche memory business. The company is positioned to capitalize on both rising spot prices and higher shipment volumes. Looking ahead, its customized CUBE memory solution is expected to tap into the growing edge AI market, supporting a positive outlook for its operations.

Furthermore, as seasonal consumer demand gains momentum in the second half of the year, combined with reduced production in the consumer segment by the major memory chipmakers, DRAM demand is anticipated to bottom out and recover as early as Q2 this year. The current inventory held by memory manufacturers is also expected to gain from the rising market prices, benefiting companies such as Nanya Technology, ADATA, Transcend, and Team Group.