Strong Demand for Memory Chips Drives Full Capacity at Winbond Electronics, DRAM Contract Prices Surge by Nearly 50%

According to Taiwan media outlet ,  Winbond Electronics, a leading memory chip manufacturer in Taiwan, has reported that its DRAM capacity is fully booked for this year. In an address at the partner conference of Lite-On Technology, Winbond's CEO, Chen Peiming, revealed that, driven by strong market demand, DRAM contract prices are expected to continue soaring in the first quarter of 2026, with an increase of nearly 50%. Even the newly established DDR4 and LPDDR4 production capacity at the Kaohsiung Lujhu plant, which is still in the process of ramping up, has been fully pre-ordered by customers.

Chen emphasized that the current memory industry is experiencing exceptionally high market activity, with demand for DRAM chips pressing through the entire supply chain, reaching end-brand customers. In response to supply shortages, some customers have even voluntarily reduced product specifications, such as downgrading from a planned 16Gb capacity to 8Gb, or switching from DDR4 to DDR3. Chen admitted that this situation is challenging for Winbond, as DDR4 and higher-end LPDDR4 products offer better profit margins. The company’s production strategy will continue to focus on optimizing its product mix, prioritizing high-margin LPDDR4 products used in smart devices, IoT, and home appliances, while reducing some DDR3 production.

In addition to DRAM, Chen also noted that prices for NOR Flash are continuing to rise, and SLC NAND remains in tight supply due to limited availability.

Regarding capacity expansion, new equipment at the Kaohsiung Lujhu plant is expected to be installed by May-June, with new NAND Flash production capacity coming online slightly ahead of DRAM production. However, even with this expansion, the new capacity has already been pre-booked, with order visibility extended through 2028.