ComputInsights #31 – Weekly Computing Market Insights

Market Growth

Memory Shortage and Price Surge Expected to Persist Through 2026

Taiwanese memory module makers, including Transcend and Adata, anticipate that rising DRAM and NAND Flash prices and ongoing supply shortages will extend well into 2026, driven by robust demand from embedded and cloud applications. Transcend reported record profits with strong DDR4 sales and strategic stockpiling, while Adata’s revenues have already surpassed 2024 levels as major cloud providers secure long-term capacity. With no new memory production planned for 2026, the global memory market is bracing for continued tight supply and escalating prices.

China Relaxes Chip Export Curbs, Pressures EU to Resolve Nexperia Dispute

China has partially eased export restrictions on Nexperia-made chips while urging the EU to press the Netherlands to lift its control measures, which Beijing blames for global semiconductor disruptions. The move has begun relieving shortages for European automakers such as Volkswagen, Bosch, and Honda, though the easing is temporary and limited to civilian-use exports. EU officials say talks between China, the Netherlands, and the EU are progressing, raising hopes that automotive chip supplies could normalise within weeks if diplomacy continues positively.

AI Boom Drives Memory and CPU Price Surge as DDR5 Supply Tightens

AI-driven demand is pushing DDR5 and mainstream CPU prices sharply higher, with DDR5 spot prices jumping up to 25% in a week after Samsung, SK Hynix, and Micron halted contract quotations. Samsung’s supply suspension and capacity shifts toward AI memory like HBM have tightened the market, while Intel and AMD have raised CPU prices by up to 10% amid limited supply and rising component costs. Analysts expect continued price pressure through year-end, as AI and seasonal demand strain global semiconductor availability.

Company-Specific News

ZEITEC Semiconductor Accelerates TDDI Expansion to Dominate Mobile Phone Aftermarket

ZEITEC Semiconductor is intensifying its push into Touch and Display Driver Integration (TDDI) to capture a larger share of the fast-growing mobile phone aftermarket, which now exceeds 400 million units annually. Leveraging its dominant 50% market share in display bridge ICs and strong relationships with module makers, the company expects TDDI revenues to surpass bridge IC sales by the second half of 2026. ZEITEC’s strategy – centred on chiplet-based integration, rapid development, and aftermarket expertise – positions it to expand across new applications like gaming touchpads and sustain long-term revenue growth.

SanDisk Hikes NAND Flash Prices by Up to 50% in November

According to Taiwan’s Electronic Times, SanDisk, a leading flash memory manufacturer, has sharply increased contract prices for NAND flash memory in November. The price surge reaches up to 50%, reflecting strong demand and tight supply in the global memory market. This move is expected to impact both downstream electronics manufacturers and pricing trends in consumer devices.