Driven by strong demand from cloud service providers, the demand for HBM and server modules has surged. However, constrained by long equipment lead times and capacity reallocation, supply growth continues to lag behind. As traditional memory is severely squeezed, the market supply deficit remains difficult to resolve, keeping prices elevated. Consequently, capital expenditures and procurement strategies require continued close attention.

Key Highlights

• Demand Surge: Cloud giants expand infrastructure, driving significant growth in AI chip and server shipments while boosting demand for advanced memory modules.
• Supply Constraints: Extended equipment lead times and new facility schedules slow capacity expansion, leaving supply growth far behind market demand.
• Capacity Squeeze: Suppliers prioritize HBM production, severely crowding out traditional server DRAM supply and worsening market deficits.
• Price & Risks: Sustained high DRAM prices elevate cloud service provider costs, requiring close tracking of future purchasing strategies and market variables.

Table of Contents

1. AI Compute Demand Will Continue Expanding in 2027 as DRAM and HBM Supply Growth Fails to Keep Pace
2. New Fabs and Process Migrations Will Drive 24% Supply Bit Growth in 2027, but Relief from the Capacity Crowding-Out Effect Will Be Limited
   • HBM’s Share of DRAM Wafer Input Will Expand Further in 2027
3. Shipment of AI Chips and HBM Adoption Capacity to Ramp up Memory Demand in 2027; Server DRAM Modules Capacity Emerges as a Potential Demand Variable

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