Phison CEO Pushes Back on Acer’s DRAM Supply Comments
Acer CEO Jason Chen said supplies of mainstream DDR4 and DDR5 have increased and are no longer broadly constrained
Phison CEO K.S. Pua joked that media reports made it seem like Acer was the only company not suffering from the shortage, arguing that companies across the industry are still struggling with DRAM availability
Phison is looking to reduce this constraint through its aiDAPTIV+ architecture, which combines software with the company’s SSD technology to allow AI models to operate with less DRAM
On pricing, Mirae Asset Securities expects Samsung’s DRAM average selling price to rise 16.5% QoQ in Q3 and another 5.4% in Q4, pointing to slower price growth rather than an outright reversal
Long-term contracts are also becoming increasingly important. Samsung is seeking to lock in 60% to 70% of its memory production capacity through LTAs, while SK Hynix has finalized agreements with around 10 customers, including key strategic partners
These agreements give suppliers greater visibility over future volumes and can limit the capacity available for shorter-term negotiations, even as some products begin to see looser supply
Jason Chen, chairman of Taiwanese PC and IT hardware maker Acer, dismissed the memory Big 3's claim that memory prices will keep rising through 202X, saying it simply isn't true.
Specifically, he said the reason memory makers keep coming out and saying "the price uptrend will continue into 2027" is that antitrust rules prevent them from coordinating prices directly, so they use public statements to send a kind of "signal" to one another. He said a veteran like him can tell just by looking.
He also pushed back on the market narrative of a memory supply shortage:
"No. How could it stay short forever? Chinese capacity keeps coming onto the market. The supply shortage problem has already completely disappeared."
Chen also expects the cost of the SSDs and memory Acer holds in 2027 to be lower than this year. If that gets reflected in end product prices, he sees a possibility that prices at least stop rising and stabilize in the second half of next year.
Chen said prices could be raised further in 1Q27 as well. But since this is a period of pricing chaos, he expects the size of the increases to gradually shrink. He estimates component prices could peak around the middle of 2027, when the capacity that chipmakers have added is expected to start running in earnest.
After that, prices would enter a stable phase, and whether they can actually come down in the second half remains to be seen. He admitted, though, that nobody can know the exact timing of the reversal. Chen said PC selling prices coming back down is strictly "a hope."
He criticized component suppliers for treating price hikes like a fad. Countless suppliers are showing up to notify him of price increases, he said, and a whole series of components, from PCBs to glass fiber cloth to memory, are going up one after another.
He wrapped up by saying this chain of price hikes ultimately creates inflation, which in turn pushes central banks to raise rates, and that "this is not a normal phenomenon."
*This quote does not reflect my views and is shared solely for informational purposes.