ComputInsights #34 – Weekly Computing Market Insights

Market Growth

Memory Market Faces Deepening Crisis as DRAM and NAND Prices Surge – Shortages Expected Through 2027

The global DRAM and NAND markets are facing escalating shortages as production shifts toward high-bandwidth memory (HBM) for AI accelerators, causing commodity memory prices to skyrocket. A 16 Gb DDR5 chip now costs $27, making a 16 GB module roughly $225–$228 before premiums and logistics, with December contract prices up 80–100% month-on-month. TeamGroup’s GM warns that supply will worsen in early 2026, with normalisation unlikely until 2027–2028, as building new fabs takes years and large AI customers continue to secure priority allocations.

Company-Specific News

TSMC Plans Major 2nm Expansion with Three New Fabs in Taiwan

TSMC is set to increase its 2nm wafer fab count in Taiwan from seven to ten, adding three new fabs in Tainan alongside existing sites in Hsinchu and Kaohsiung. The $28 billion expansion aims to meet rising demand for AI and high-performance computing chips, with mass production expected by 2026 and combined output surpassing 100,000 wafers per month.

Samsung DDR5 Prices Surge Up to 60% Amid AI-Driven Memory Demand

The global memory market is experiencing a “super storm” as AI computing demand drives sharp price increases for Samsung DDR5 DRAM. Wholesale prices for 16GB and 32GB chips have jumped 60% this month to $135 and $239, respectively, with large-capacity modules such as 64GB and 128GB also seeing significant hikes. The surge is fueled by AI and high-performance computing needs, where DDR5’s high bandwidth and speed make it essential for training large models and supporting servers and data centers.

Samsung Restricts DRAM Supply to Its Smartphone Division Amid Soaring Memory Prices

Samsung’s semiconductor division (DS) has reportedly refused to provide its Mobile Experience (MX) unit with more than a year’s supply of DRAM for Galaxy smartphones, shifting to 3-month contracts to maximize profitability amid soaring memory prices. The price of 12GB LPDDR5X RAM has more than doubled this year, reaching $70, forcing quarterly renegotiations for supply. This decision may impact the Galaxy S26 launch in February 2026, potentially raising flagship prices, even as Samsung expects operating profits to hit $69 billion in 2026 due to strong DRAM, NAND, and 2nm GAA yields.