Ingenic: DRAM foundry capacity strain won't ease until 2H27

Ingenic, a semiconductor company, has indicated that the strain on DRAM (Dynamic Random-Access Memory) foundry capacity is not expected to ease until the second half of 2027. This suggests a prolonged period of tight supply for these critical memory components, extending current market conditions for several more years.

This extended capacity constraint matters because DRAM is essential for a wide range of electronic devices, from smartphones and computers to servers and AI hardware. A prolonged tight supply could lead to sustained higher production costs for manufacturers and potential delays in the availability of new products across various technology sectors.

The mechanism behind this involves the high demand for DRAM, partly driven by the increasing needs of artificial intelligence (AI) applications, outpacing the current manufacturing capabilities of foundries. Building new foundry capacity is a capital-intensive and time-consuming process, contributing to the multi-year timeline for resolution.

This situation primarily impacts companies that rely heavily on DRAM for their products, such as PC manufacturers (e.g., HP, Dell), smartphone makers (e.g., Apple, Samsung), and server/data center providers (e.g., Amazon, Microsoft). Semiconductor companies that produce DRAM (e.g., Micron Technology [MU], Samsung, SK Hynix) may see sustained pricing power, while those needing to procure it could face higher input costs.