A shortage-driven price hike in memory chips has rippled into the downstream packaging and testing sector. DRAM and NAND Flash manufacturers are ramping up shipments, flooding leading packaging firms like Powertech Technology (6239), ASE Group (8110) and Nan Ya PCB (8150) with orders—pushing their capacity utilization close to full. These players have recently raised prices by nearly 30%, with sources hinting that a second round of hikes may be on the way amid overwhelming demand.
Analysts project that the price increase benefits will start showing in Q1 financial reports. A potential second price adjustment could fuel both volume and margin growth for memory packaging players in 2026, paving the way for a stellar year of performance. While these companies remain low-key about pricing moves, they acknowledge flexible adjustments based on market demand dynamics.
The price rally stems from a supply-demand imbalance: Samsung, SK Hynix and Micron are prioritizing HBM production for AI applications, diverting resources from standard DRAM and NAND manufacturing and tightening supply of legacy products. Meanwhile, recovering demand from cloud computing and industrial control sectors is driving robust uptake of DDR4, DDR5 and NAND chips, further boosting backend packaging needs.
Powertech, a global leader in DRAM and NAND packaging, is seeing near-full capacity utilization across product lines, with its top-tier client base set to drive margin expansion. ASE Group, focused on niche memory packaging, is bouncing back as industrial clients resume orders and inventory destocking concludes. Nan Ya PCB stands out as a key beneficiary of traditional DRAM recovery, with DDR4 products accounting for 70–80% of its revenue and underpinning its operational growth.
In my view, this trend underscores the critical role of packaging and testing in the memory ecosystem’s value chain. As AI-driven HBM innovation reshapes supply structures, traditional memory packaging players are well-positioned to capitalize on supply gaps, making 2026 a transformative year for the segment.
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