{
  "id": 19365815,
  "title": "Memory chip CEO warns 2027 shortage will be so bad that ‘even money can’t buy goods’",
  "url": "https://urgent.news/2026/11/10/memory-chip-ceo-warns-2027-shortage-will-be-so-bad-that-even-money",
  "topic": "tech",
  "section": "Tech",
  "published": "2026-11-10T16:31:59.000Z",
  "source": {
    "name": "Fortune",
    "slug": "fortune",
    "url": "https://fortune.com/2026/11/10/team-group-ceo-memory-chip-shortage-2027-even-money-cant-buy-goods/"
  },
  "original_language": "en",
  "account": "Gerry Chen, CEO of Taiwanese memory manufacturer Team Group, has warned that a global memory chip shortage could become so severe by 2027 that \"even money can't buy goods.\" According to a report by BigGo Finance, the most severe shortage period is expected to last from now until the end of the second quarter of 2027. Chen expects no downward trend in prices and does not foresee supply and demand balancing until the second half of 2028. The warning extends beyond memory makers, as AI servers and devices such as PCs, smartphones, and cars rely heavily on DRAM and NAND flash chips. These chips are also used in AI applications, causing a bidding war among buyers. As a result, device manufacturers are faced with higher prices, thinner margins, and reduced output. AI server manufacturers, including Samsung, SK Hynix, and Micron, have shifted their production focus towards high-bandwidth memory used in AI chips, leaving less conventional memory available for consumer devices. Team Group's business now consists of 64.6% business-to-business sales, up from 24.6% a year earlier. The CEO attributed this change to market demand rather than a strategic decision. DDR5 prices have increased more than fivefold in a year, with contract prices for a 16-gigabit DDR5 chip rising from $8.70 in October 2025 to $48 in September 2026. For Team Group, the shortage has resulted in a record NT$10.14 billion (approximately $312 million) in third-quarter revenue, a nearly 34% increase from the previous quarter, and a gross margin of 49.3% from 42.8% in the second quarter. However, device manufacturers face the consequences of this situation, with Apple reportedly reducing component orders for its iPhone 18 Pro models and global smartphone shipments expected to fall by 16.7% this year.",
  "summary": "The CEO of Taiwan’s Team Group says the worst of the memory shortage runs through mid-2027, with prices still climbing and supply balance unlikely before late 2028.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}