TeamGroup warns the memory shortage has not reached its peak yet
TeamGroup recently shared financial results for its latest quarter. Beyond the soaring figures and shifting market trends, the report highlights the worrisome direction the entire chip industry is heading toward. As it turns out, the worst of the memory shortage is still to come. Read Entire Article
Major memory manufacturer TeamGroup has issued a stark warning that the ongoing memory shortage has not yet peaked. In its latest quarterly financial results, the Taiwanese company highlighted the grim outlook for pricing and availability in the chip industry. TeamGroup CEO Chen Ching-wen expects prices to continue rising for several more months, with the worst chip shortage expected to persist from late 2026 through the end of Q2 next year.
Despite having long-term supply agreements with major memory chipmakers, TeamGroup is struggling to secure sufficient volumes, forcing the company to purchase critical components on the spot market at steep premiums. B2B revenue now accounts for 64% of TeamGroup's total sales, up from 24% just a year earlier, while B2C sales have plummeted to just 35%.
The surge in demand for memory chips is largely driven by the AI sector, which has absorbed much of the industry's production capacity. Despite these challenges, TeamGroup reported a strong third quarter, with revenue up 33% quarter-over-quarter and operating profit increasing by 46.8%.
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