Team Group says memory buyers should brace for a deeper supply crunch, not relief. At its November 2 earnings call, the Taiwanese memory-module maker warned that shortages may be most severe from the fourth quarter of 2026 through the second quarter of 2027. Its CEO also said the company expects no downward price trend in 2027, as demand continues to outstrip supply.
Key takeaways
- Team Group expects the worst supply conditions between Q4 2026 and the end of Q2 2027.
- The company sees no memory price declines in 2027; supply-demand balance may not return until H2 2028 or later.
- DDR5 16Gb contract prices rose from $8.70 in October 2025 to $48 in September 2026.
- Team Group’s Q3 revenue reached NT$10.139 billion, while B2B grew to 64.6% of its business mix.
Team Group’s forecast reflects a market increasingly shaped by demand from AI servers and other enterprise applications. For PC builders and gamers, it signals that both high prices and limited availability could persist well beyond the next few quarters.
Supply constraints could intensify
Team Group CEO Chen Ching-wen said memory may become difficult to secure even for customers willing to pay elevated prices. The company says major suppliers SK hynix, Samsung and Micron have committed their 2027 output through customer agreements, leaving fewer options for other buyers. Spot prices are reportedly 30% to 50% above contract prices, underscoring the tightness of available supply.
Chinese suppliers CXMT and YMTC together account for close to 10% of the market, according to Team Group, but their output has not been enough to close the gap. The company expects supply and demand might not balance until the second half of 2028 or later. It also cited manufacturers’ focus on HBM and high-end DDR5, alongside shrinking DDR4 production, as factors limiting supply.
Prices and demand reshape Team Group’s business
DDR5 16Gb contract pricing climbed more than fourfold in less than a year, from $8.70 in October 2025 to $48 in September 2026. Team Group’s results also show how demand is shifting: B2B accounted for 64.6% of its business mix in the first three quarters of 2026, up from 24.6% in the same period of 2025. B2C’s share fell from 75.4% to 35.4% as enterprise and AI-related demand strengthened.
For Q3, Team Group reported revenue of NT$10.139 billion, net profit of NT$3.618 billion and earnings per share of NT$37.19. Gross margin reached 49.27%. The company attributed its performance to higher memory prices, product mix and the difference between the cost of existing inventory and current selling prices.
New capacity is planned for 2027
Team Group plans to install equipment at a new New Taipei City facility in Q1 2027, with production expected to begin in Q2. The company projects the site will increase its overall capacity by about 50%. That expansion may help Team Group serve customers, but it is not expected to resolve the broader market shortage on its own.
For PC buyers, the outlook points to continued pressure on memory pricing and availability through 2027. Team Group did not provide specific Q4 financial guidance, and its price and supply outlook is a company forecast rather than a guarantee of future market conditions.