Memory OSATs Spark Price Hikes of Up to 30%

According to Taiwanese media reports, the ongoing shortage and price surge in memory chips is now spreading downstream into the packaging and testing (OSAT) segment, signaling tighter conditions across the entire memory supply chain.

As major DRAM and NAND Flash makers ramp up output to accelerate shipments, memory-focused OSAT players such as Powertech Technology, Walton Advanced Engineering, and ChipMOS have seen a flood of orders. Capacity utilization at these plants is nearing full load, prompting several companies to raise packaging and testing prices in recent weeks, with increases reaching as high as 30 percent. Industry sources note that order backlogs remain extremely heavy, and a second round of price hikes cannot be ruled out.

After the latest price adjustments by Powertech, Walton, and ChipMOS, the financial impact is expected to gradually show up in earnings starting from the first quarter. If further price increases materialize, this year could mark a rare period of simultaneous volume and price growth for the memory packaging and testing sector, potentially delivering a strong earnings boost heading into 2026.

When asked about pricing, the companies involved have kept a low profile, emphasizing only that quotations are adjusted flexibly based on market supply and demand.

Industry analysts point out that Samsung Electronics, SK hynix, and Micron are all prioritizing capacity expansion for AI-related high-bandwidth memory (HBM). This shift is concentrating resources on advanced process nodes and advanced packaging, while squeezing output of conventional DRAM and NAND products. As a result, supply of older-generation memory has tightened noticeably.

At the same time, demand from cloud computing, industrial control, and enterprise applications is recovering. Strong pull-in for DDR4, DDR5, and NAND products is further driving backend packaging and testing demand. Major Taiwanese memory OSAT providers, including Powertech, ChipMOS, and Walton, are now running close to full capacity, creating the conditions for price increases of up to 30 percent and leaving the door open for additional hikes depending on how supply and demand evolve.

Powertech remains a global leader in DRAM and NAND packaging and testing. Supply chain sources indicate that its DRAM capacity utilization is nearly maxed out, while NAND utilization also remains at a high level. With customers largely consisting of top-tier international memory makers, the current round of price increases is expected to feed directly into gross margins and profitability, making Powertech a key performance benchmark for the sector.

Walton focuses primarily on niche memory packaging and testing. Over the past year, it was more heavily affected by adjustments in industrial and specialized application demand. Recently, however, orders from industrial customers have resumed, inventory digestion is largely complete, and demand has returned to above-normal levels.

ChipMOS, meanwhile, is viewed as a representative beneficiary of the recovery in the traditional DRAM market. While NAND accounts for a relatively small share of its revenue, the company has deep exposure to DRAM. Within its current revenue mix, DDR4 products make up roughly 70 to 80 percent, forming the core foundation of its operating performance.