Team Group CEO Warns Memory Chip Shortage Through 2027
Team Group CEO Gerry Chen warns that AI demand is driving a severe memory chip shortage that may not balance until 2028.
Gerry Chen, CEO of Team Group, warned during a November 2 earnings call that a global memory chip shortage will intensify through the second quarter of 2027. He stated that "even money can’t buy goods," as AI servers and enterprise applications absorb the majority of DRAM output.
Major suppliers including Samsung, SK Hynix, and Micron have shifted production capacity toward high-bandwidth memory to meet AI demand. This transition caused contract prices for 16-gigabit DDR5 chips to rise more than fivefold in one year, climbing from $8.70 in October 2025 to $48 in September 2026.
While the shortage pushed Team Group's third-quarter revenue to a record NT$10.14 billion, it forces device makers to accept higher costs or lower margins. Supply and demand are not expected to balance until the second half of 2028 at the earliest, though SK Hynix suggested the shortage could persist until 2030.
