[News] Winbond Expects DRAM Prices to Jump Nearly 4× by June 2026; Capacity Booked Through 2027

AI applications continue to drive unprecedented demand for memory, with DRAM supply tightness taking center stage at Winbond’s earnings call yesterday. According to Economic Daily News, Winbond said the DRAM shortage is set to persist, with memory prices this quarter expected to surge 90–95%, and price increases next quarter likely to remain in line with the current quarter.

As Economic Daily News notes, beyond the near-doubling of prices this quarter, memory pricing is expected to rise by almost another fold in the second quarter, implying that by end-June, prices could be nearly four times those at the end of last year. Commercial Times also notes that Winbond’s capacity for this year and next year is already fully sold out, with utilization running at full load.

On the back of the sharp pricing rebound, institutional investors are bullish on Winbond, expecting strong profit growth over the coming quarters. Management also indicated that gross margin this quarter will exceed 46.9%, Economic Daily News notes.

Winbond President Pei-Ming Chen, as cited by Economic Daily News, said the DDR4 supply gap is “so large that it’s hard to see how it can be filled.” Even as Winbond expands capacity, the company expects tight supply to persist for some time. He added that SLC NAND faces an even larger shortage, with price increases outpacing DRAM.

Capacity Expansion and 2026 Output Outlook

Looking ahead to 2026, the company expects bit shipments to rise 30–40% year on year, while wafer starts are projected to grow by around 10% annually, Commercial Times notes. On capacity expansion, Winbond said the board has approved NT$42.1 billion in 2026 capex—a record high—to expand capacity across its CMS memory, NOR Flash, and SLC NAND product lines. The investment includes portions of multi-year payments and covers expansion at both the Taichung and Kaohsiung sites.

Memory Demand Fuels Strong Profit Recovery

On profitability, according to Economic Daily News, Winbond reported net profit after tax of NT$3.422 billion in 4Q, up 16.28% quarter on quarter, swinging back from a net loss of NT$678 million a year earlier. For 2025, net profit reached NT$3.177 billion, nearly 3.5× that of 2024, with EPS of NT$0.88.

As noted by Commercial Times, strong demand for DDR4 and LPDDR4 drove the CMS division’s full-year revenue up 139% year on year, making it Winbond’s key growth engine. NOR Flash revenue rose 8% year on year, allowing the company to retain its position as the world’s largest NOR Flash supplier and further expand market share. Meanwhile, the Logic IC business maintained stable shipments and a relatively steady gross margin structure.

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(Photo credit: Winbond)