Recently, Chen Libai, chairman of ADATA, publicly stated that DRAM memory is facing unprecedented supply chain tension due to the surge in demand for artificial intelligence, and this shortage may continue for a full decade.
The remarks were made in response to the recent decline in TSMC's stock price after announcing record financial results. Although there are voices in the market that the fall in TSMC's stock price may indicate that the AI boom is at risk of a bubble bursting, Chen Libai holds the opposite view. He pointed out that the current AI bubble is still very far away from bursting, and the industry will not be qualified to discuss the possibility of the bubble bursting until after 2030 at the earliest, and then it can be initially assessed whether AI's strong demand for DRAM, NAND Flash and computing power can continue to support until 2040 or even 2050. Under the current trend of exponential growth, entire vertical industries such as storage, computing, and power infrastructure are expanding rapidly simultaneously, and overall market demand will significantly exceed supply in the long term.
In addition, Chen Libai mentioned that the world's major memory manufacturers, including SK Hynix, Samsung, Micron and even CXMT (Changxin Technology), are currently very cautious in capacity expansion. In order to avoid excessively increasing production capacity and adversely affecting their own business and profit margins, major manufacturers have chosen to reserve room, which also makes existing expansion projects far from being able to meet the current outbreak of market demand.