Driven by robust AI server demand and capacity displacement from HBM, combined with delayed output from new fabs, DRAM supply remains tightly constrained, sustaining a seller's market. Conversely, boosted by the rollout of new capacity alongside weak consumer demand, NAND Flash is shifting toward a looser supply-demand structure and will face downward price adjustment pressure in the second half of the year, underscoring a clear divergence in their market cycles.

Key Highlights

• DRAM Supply: Although manufacturers are increasing capital expenditures and expanding capacity, actual significant output is delayed due to equipment delivery schedules, construction timelines, and long advanced-node manufacturing cycles. Furthermore, high-bandwidth memory consumes substantial wafer volume, slowing overall supply growth and leading to a structural capacity constraint.
• DRAM Demand: Demand remains robust, driven by AI and general servers. While consumer end-devices suffer from high component costs that dampen replacement appetite, defensive pre-emptive procurement by clients is further widening the market supply deficit.
• NAND Flash Supply: Major vendors are gradually bringing new capacity online while accelerating transitions to ultra-high layer technology and boosting the share of specific products, resulting in a substantial expansion of overall market output.
• NAND Flash Demand: Enterprise SSD procurement shows strong momentum, whereas consumer electronics face subdued buying interest due to price hikes. Overall supply-demand is shifting toward a looser structure, putting downward pressure on prices in the second half of the year unless the widespread adoption of new technologies sparks significant demand.

Table of Contents

1. DRAM Production Capacity Will Tighten Further in 2027, Whereas New NAND Flash Production Capacity Will Reverse Supply-Demand Dynamics
2. DRAM Buyers Expand Defensive Stockpiling; Supply-Demand Gap Will Sustain Seller’s Market in 2027
3. NAND Flash Supply-Demand Imbalance Alleviate Gradually in 2027 alongside Releases of New Capacity and Sluggish Consumer Demand
   • DRAM & NAND Flash Sufficiency Ratios

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