Team Group CEO Warns Memory Chip Shortage Could Last Until 2028
Team Group’s CEO warns that tightening global memory chip supplies may prevent companies from obtaining enough chips even with long-term contracts. He expects prices to remain high in 2027 and supply and demand to regain balance no earlier than the second half of 2028.
At a third-quarter earnings meeting, Team Group CEO Gerry Chen (Chen Ching-wen) said the most difficult period for the memory chip market could last until the end of the second quarter of 2027. He expects chip prices to remain high in 2027 and supply and demand to regain balance no earlier than the second half of 2028. Even companies with long-term supply contracts may be unable to buy all the chips they need.
Stock photo of memory chips.（VietVance）
DRAM and NAND flash are used in AI servers, as well as in computers, smartphones and cars. Manufacturers including Samsung, SK Hynix and Micron have shifted some production capacity to the high-bandwidth memory used in AI processors, reducing supplies of conventional memory chips for consumer electronics.
The tight supply is already reflected in prices and Team Group’s business mix. Figures released at the earnings meeting show that the contract price of 16Gb DDR5 memory chips rose from US$8.70 in October 2025 to US$48 in September 2026. Revenue from business customers accounted for 64.6% of Team Group’s total revenue in the first nine months of 2026, up from 24.6% in the same period a year earlier. Gerry Chen said the shift was driven mainly by market demand.
Team Group’s third-quarter revenue reached a record NT$10.14 billion (about US$312 million), up nearly 34% from the previous quarter; net profit was NT$3.62 billion (about US$111 million). Gerry Chen said that despite having contracts, the company still had to buy chips on the spot market at prices 30% to 50% above contract prices. Rising chip prices are also increasing component costs for electronics makers and could push computer and smartphone prices higher.
Source: VietVance
