DRAM chip supply to module makers could drop by more than 70% year-on-year in 2027, says Apacer CEO
The projected decline is driven by rising demand for HBM and server RAM, which is straining manufacturing capacity. Apacer has raised $383 million to secure supply and mitigate potential shortages.
Apacer CEO C.K. Chang has warned that DRAM chip supply to module makers could fall by over 70% in 2027 compared to the previous year. This forecast is based on the growing demand for high-bandwidth memory (HBM) and server-grade RAM, which are consuming a significant portion of manufacturing resources. The situation is exacerbated by the limited number of DRAM producers, with Samsung and other major manufacturers prioritizing high-margin products over commodity memory.
The demand for HBM and server RAM has surged due to the expansion of data centers and the increasing reliance on AI applications. These sectors require large volumes of memory, which are pushing manufacturers to allocate more resources to specialized memory types. As a result, the supply of standard DRAM chips for module makers is being squeezed, leading to potential bottlenecks in the supply chain.
According to industry forecasts, the drop in DRAM chip supply could reach over 70% in 2027. This decline is expected to be most pronounced in the second half of the year, as manufacturers continue to shift their focus toward high-performance memory solutions. The situation is further complicated by the fact that only a few companies, such as Samsung and CXMT, are capable of producing the necessary components in sufficient quantities.
The implications of this supply drop are significant for the broader electronics industry. Increased costs, longer lead times, and potential shortages could disrupt production schedules for manufacturers that rely on DRAM chips. Additionally, the concentration of DRAM manufacturing in a few key players may lead to greater vendor lock-in and reduced competition, affecting pricing and innovation in the market.
The situation remains fluid, with Apacer and other companies taking steps to secure supply through financial investments and strategic partnerships. However, the long-term impact of the DRAM shortage will depend on how quickly manufacturers can adjust their production strategies and whether new entrants can emerge to meet the growing demand for memory components.