Supply Chain Brief: Memory Market Conditions in 2026

Press Office, VersaLogic Corporation, 02/03/26

Component Market Update

February 3, 2026

Since issuing our prior briefing on the DDR4 and DDR5 memory environment, new industry announcements and supplier signals have emerged that provide additional clarity on timing, capacity expansion, and the ongoing impact of AI-driven demand. The most relevant updates are outlined below.

• Supply Remains Structurally Constrained: Recent industry updates continue to indicate that DDR4 and DDR5 supply tightness will persist into 2026–2027, with AI and server demand absorbing the majority of available and incremental memory capacity.
• Pricing Pressure Continues: Near-term pricing remains volatile and biased upward, with suppliers maintaining allocation controls and prioritizing higher-margin AI and server-class products.
• Micron Expansion Activity (Long-Term Impact): Micron announced multiple major investments across Idaho, New York, Virginia, and Taiwan totaling well over $150B; however, meaningful incremental DRAM output from these efforts is not expected until 2027 or later, reinforcing the lack of near-term supply relief.
• Asian Supplier Signals: Taiwanese DRAM manufacturers, including Nanya, continue to signal tight supply conditions and strong booking behavior through at least mid-2027.
• Industry Outlook: Public market commentary published this week reinforces that current shortages are structural rather than cyclical, with new capacity additions lagging demand growth driven by AI workloads.
• Our Actions: VersaLogic is actively qualifying additional memory sources to mitigate supply risk and manage cost, while maintaining allocation controls aligned to confirmed customer purchase orders.

For more information please contact VersaLogic at:

• Call: 503-747-2261 Toll-Free: 800-824-3163 Fax: 971-224-4708
  Monday – Friday 8 a.m. – 5 p.m. Pacific Time
• Email: Sales@VersaLogic.com or Info@VersaLogic.com
• Contact VersaLogic

DOWNLOAD FEB SUPPLY CHAIN BRIEF UPDATE

January 20, 2026

The global semiconductor supply chain remains under significant strain in early 2026, with DDR4 and DDR5 memory markets facing sustained shortages and extreme volatility. What initially appeared to be short-term disruption has become a longer-term structural imbalance between supply and demand.

To read the full supply chain brief, download below:
DOWNLOAD JAN 20, 2026 SUPPLY CHAIN BRIEF

Pricing Volatility and Allocation
Memory pricing has increased sharply over the past several months:

• DDR4 and DDR5 prices have more than doubled in many cases.
• VersaLogic has seen individual memory components increase up to 700% compared to historical pricing.
• Supplier quotes are often short-lived and may change prior to shipment.

In parallel, memory components are largely under allocation, limiting flexibility for incremental or unplanned demand.

Lead Times Remain Extended
Availability continues to be constrained:

• Typical lead times for memory components are now 32 to 40+ weeks.
• Even modest increases in demand may not be supported without significant advance notice.
• These extended lead times have effectively become the new normal for memory sourcing.

Root Cause
Two primary factors are contributing to the tight market:

• AI and data center demand is consuming a growing share of global memory capacity.
• Memory manufacturers are prioritizing higher-margin products, such as HBM and server-grade DDR5, reducing output for standard DDR4 and embedded-focused parts.

New memory fabrication capacity is not expected to come online until late 2026, meaning current conditions may persist into 2027.

VersaLogic Response and Customer Guidance
To manage risk and ensure delivery stability, VersaLogic now procures memory only against confirmed customer purchase orders. Products that include memory are placed on allocation to support planned builds.

Customers are encouraged to place orders as early as possible and work closely with their VersaLogic sales representative to align schedules and expectations.

Proactive planning remains the most effective way to navigate today’s memory supply environment. We value your continued partnership as we work through these unprecedented market conditions together.

For more information, please contact VersaLogic.