Apacer CEO warns DRAM chip allocations to non-AI module makers will collapse from 100% to <30% in 2027 as AI demand consumes entire manufacturing capacity.
Memory supply from major DRAM manufacturers to independent module makers could drop to just 30% of 2026 levels in 2027, according to C.K. Chang, CEO of Taiwanese memory vendor Apacer. Chang made these comments during the company's 1H 2026 investor conference on July 24 and in subsequent media interviews. Although memory price increases are expected to slow during the second half of 2026, he believes severe shortages will persist into at least mid-2027, with DRAM remaining the most constrained segment.
The greatest risk facing Apacer, which purchases memory wafers from manufacturers such as SK Hynix and Samsung and converts them into finished products, is no longer overpaying for chips but failing to obtain any supply at all. In preparation for worsening shortages, the company grew its inventory to NT$12.4 billion ($383.2 million USD) by the end of June, up 48% from NT$8.38 billion ($259 million USD) in the prior quarter. Apacer is also arranging a five-year syndicated loan of up to NT$4 billion ($123.6 million USD) to purchase additional chips as manufacturers make them available.
Chang's projection specifically refers to the volume major chip manufacturers allocate to downstream module companies like Apacer, not to worldwide DRAM production overall. DRAM manufacturers are increasingly reserving their output for high-bandwidth memory (HBM), server memory, and other products purchased directly by large AI and cloud customers. Samsung, SK Hynix, and Micron—which together control over 90% of the global DRAM market—are prioritizing these higher-margin segments as AI infrastructure spending consumes an increasing share of available manufacturing capacity. Chang estimates that approximately 60% of DRAM capacity is now directed toward server-related applications, leaving conventional DDR4 and DDR5 products competing for a shrinking portion of the market.
DDR5 RDIMM server modules have received aggressive price increases and retain the greatest potential for future markups. Demand from AI servers, enterprise storage, industrial computers, and edge AI systems remains strong. Chang expects DRAM contract prices to rise approximately 30% during the third quarter of 2026 and NAND flash to increase by more than 20%, with price growth moderating again in the fourth quarter. Analysts project a 40% increase in DRAM prices in Q3 2026.
NAND flash is also being pulled into the AI boom, with high-capacity enterprise SSDs increasingly used for model storage, data staging, and key-value cache offloading. While flash cannot replace DRAM due to lower bandwidth, it serves as a tier within AI memory systems, increasing demand for enterprise SSDs alongside server memory.
Chinese memory makers CXMT and NAND producer YMTC have narrowed their pricing gaps with established international suppliers, and CXMT's DDR5 products have become competitive. However, domestic demand in China already exceeds available supply, while capacity expansion, manufacturing yields, product validation, and platform compatibility continue to limit their ability to change the global balance. Prices of new DRAM modules from CXMT are reportedly similar to those of the major three manufacturers.
Stockpiling memory inventory at historically high prices carries the risk of substantial losses if the market suddenly reverses. However, Apacer says it has seen no evidence of an approaching collapse. The company is betting that possessing expensive memory in 2027 will be considerably better than having no memory to sell at all.