Memory Manufacturers’ Reluctance to Ramp Up Production Deepens Market Crisis

Memory manufacturers, partly responsible for the current market crisis, are in no hurry to resolve it. At least Samsung and Hynix, who occupy the top two positions in the DRAM market, do not intend to increase production volumes at the expense of profits. The companies have stated that they rely on sustained profitability, which means they should not rapidly increase production.

Instead of swiftly expanding production capacities, we will adhere to a strategy of maintaining long-term profitability. We minimize the risk of overproduction through a capital expenditure strategy that balances consumer demand and pricing, says Samsung .

The RAM situation is expected to worsen. TeamGroup warns of further price hikes in December and early 2026. Thus, it’s not just a phenomenal demand but also the fact that manufacturers simply do not intend to rapidly increase chip production volumes. Companies say that the resulting deficit, in this case, will persist for at least several quarters. It is worth mentioning that the head of TeamGroup states that the situation will only get worse in 2026. Meanwhile, these two companies hold 70% of the entire market, leaving Micron, which is in third place, as the only major competitor.