The global memory shortage is becoming increasingly serious. Manufacturers such as Corsair and ADATA have "suspended orders" due to price surges. This surge has also gradually spread to PC manufacturers such as Asus, bringing a direct impa...
The global memory shortage is becoming increasingly serious. Manufacturers such as Corsair and ADATA have "suspended orders" due to price surges. This surge has also gradually spread to PC manufacturers such as Asus, bringing a direct impact to the consumer public. Hu Shubin, co-chief executive of ASUS, said frankly at a conference recently that if the imbalance between supply and demand continues, product prices will be adjusted "under moderate circumstances."
Hu Shubin pointed out that Asustek noticed that the memory market was becoming tight in the first half of the year, so it gradually lengthened the inventory cycle. As of the end of the third quarter, ASUS had about 2 months of component inventory and nearly 2 months of channel-side finished products, totaling about 4 months of safety stock, which helps mitigate the impact of short-term material shortages. He emphasized that the company is working closely with DRAM suppliers and adjusting its PC product portfolio to reduce operational risks, so the impact of the memory shortage on the fourth quarter will be relatively limited.
He pointed out that ASUS will work closely with DRAM suppliers to adjust its PC product portfolio. If the imbalance between supply and demand continues, product prices are bound to rise further, and "product prices will be adjusted under appropriate circumstances."
Chen Qihong, chairman of Qisda Group, revealed that the cost of DDR4 and DDR5 has almost skyrocketed recently. He bluntly said that the DDR4 market is experiencing a "terrible wave of shortages" and the shortage may last until 2026. He pointed out that the memory inventory accumulated in the past has been quickly exhausted, and the DDR4 market has even formed a "take it when it is available", otherwise the products will not be shipped due to lack of materials.
Read More at Datatrack
Chen Qihong believes that although there are other products that use DDR4 memory, the main part is still Switch-related products. In addition, the world's three major memory manufacturers have transferred their production capacity to high-bandwidth memory (HBM) where demand has exploded, further compressing the supply of DDR4 and causing an overall decline in overall market inventory. He also admitted that the continued rise in the price of DDR4 has made it difficult for companies to bear, which has put a certain amount of pressure on costs.
Huang Wenfang, general manager of Qisda's Internet Communications Business Group, said that the prices of memory parts are currently open and transparent. In response to important price increases, the company is continuing to properly negotiate with customers to transfer costs.
Further reading: Memory industry’s capital expenditures next year will remain conservative, TrendForce: Supply will exceed demand throughout 2026 Damon supports Meguiar! The target price rises to US$325, optimistic about strong profit momentum and listed as the top pick.
