OFFICIAL PRESS RELEASE – PROJECT LEAD

Global Memory Crisis: DDR5 RAM and NVMe SSD Supply Constraints Expected Until 2027

Date: December 2, 2025
Issued by: Project Lead – Communications Office

Project Lead informs its business partners and the public that the global memory market is experiencing one of the most severe supply crises in recent years. This disruption is directly affecting DDR5 RAM and NVMe SSD availability and is expected to continue throughout 2026 and—according to manufacturing sources—at least until the second half of 2027.

Following last week’s announcement, Project Lead confirms that it has sufficient inventory to support ongoing production, with guaranteed prompt delivery for a limited but significant quantity of workstations. This will allow Project Lead to plan next year’s supply with greater confidence than many competitors. However, as reported by the Taiwan Economic Daily last week, the crisis could extend for as long as three years.

Potential customers are therefore encouraged to secure currently available stock while supplies last.

Causes of the crisis

The current shortage is the result of a combination of structural factors:

• Explosive demand from the AI sector: The rapid expansion of AI-focused data centers is absorbing a large share of global DRAM and NAND production capacity.

• Priority given to data centers over the consumer market: Major manufacturers—including Samsung, SK hynix, Micron, and Longsys—are shifting production toward higher-margin memory products such as HBM and RDIMMs, which are essential for AI servers.

• Acceleration of the DDR4 → DDR5 transition: The faster-than-expected phase-out of DDR4 has created a supply gap that is further reducing overall availability.

This dynamic is reminiscent of the 2021 semiconductor crisis, with one key difference: it is not the result of a sudden production shutdown, but rather a structural reallocation of manufacturing lines toward more profitable AI-related segments.

Current demand from Nvidia and OpenAI is estimated at 5 million RAM units per month, while total global output from the four companies mentioned above is approximately 1.4 million units per month. Only a small percentage will be allocated to “traditional” RAM, with the majority dedicated to the enterprise market.

Impact on prices

The effects on the market are already evident:

• DDR5 RAM: price increases of up to 400% within a few months.

• NVMe SSDs: price increases of up to 220% already underway, with further increases expected in the coming months.

• NAND raw material: 1-terabit TLC NAND rose from $4.80 to $10.70 between July and November 2025.

• Analyst forecasts: estimated increases of 30% to 50% per quarter through mid-2027.

At the same time, major international retailers have introduced strict purchasing limits (2–4 units per customer) in an effort to curb hoarding and manage inventories that have fallen to historic lows.

Market outlook

According to leading international sources, the situation is expected to remain critical throughout 2026, with potential normalization only during 2027. Even with new investments, building and ramping up new manufacturing capacity takes years, making a rapid resolution unlikely in the short term.

Project Lead’s position

In light of this scenario, Project Lead confirms it has sufficient strategic inventory to cover part of its 2026 production, ensuring operational continuity thanks to its larger stock position compared to many competitors.

During this period, Project Lead is committed to:

• continuously monitoring market developments,

• protecting customers from uncontrolled price fluctuations,

• maintaining maximum transparency regarding availability and pricing outlook.

Official statement

“The memory market is facing an unprecedented supply crisis, driven by the reallocation of production capacity toward HBM and RDIMMs for artificial intelligence. RAM prices have become extremely volatile, and the impact on the consumer sector will be unavoidable. Project Lead is prepared to navigate this phase with solid planning and adequate inventory to protect its supply chain throughout 2026.”