Meritz: 2027-2028 Storage Orders Exceed Capacity

ME News reports that on November 5 (UTC+8), South Korean securities firm Meritz Securities noted that memory chip manufacturers are currently receiving orders for 2027–2028 that far exceed their production capacity. Even if the Democratic Party gains an advantage in the midterm elections, leading to delays or adjustments in some data center projects, it is unlikely to fundamentally alter the memory chip supply shortage. Meritz stated that this year’s order fulfillment rate for memory chips—the ratio of available capacity to order volume—has remained low at 80% to 85%, driving significant price increases. The supply-demand gap is expected to widen further in 2027, with the fulfillment rate potentially dropping to around 80%. During his recent visit to South Korea, OpenAI CEO Sam Altman requested SK hynix and Samsung Electronics to secure customized memory products such as HBM for 2027–2030, with demand volumes even exceeding the two companies’ available capacity. Community user Teng Yan added that during a telephone conference with Meritz on October 29, Samsung stated that ten major clients have already signed multi-year memory supply agreements, with an equal number of clients currently in negotiations. The customer base for memory demand has expanded beyond cloud giants and AI server manufacturers to include a broader range of industries. Therefore, the slowdown in U.S. data center approvals will only affect a portion of orders and is unlikely to change the overall tight supply-demand landscape. (Source: ChainCatcher)