Samsung Electronics has accelerated the timeline for its new high-bandwidth memory (HBM) packaging plant in South Korea, now set to open in June 2028, a year ahead of schedule. This decision aims to address the burgeoning demand for AI server memory, reflecting the intense competition in the advanced packaging sector amid a global expansion of AI infrastructure.
The move underscores the growing pressure on the memory supply chain as AI applications continue to proliferate. In Taiwan, glass fiber exports to South Korea surged by 54% year-over-year in the first nine months of 2026, driven by the increased demand for HBM and advanced packaging. Consequently, South Korea has become Taiwan's largest trade deficit partner, with a deficit reaching US$59.37 billion in the first 10 months of 2026, more than double the deficit with Japan.
Meanwhile, AMD is addressing the rising costs associated with memory by introducing AI-predictive memory management technology. This innovation tiers DRAM and NAND flash, forecasting data-access needs, and moving data from Flash to DRAM before CPUs require it, thus reducing reliance on costly DRAM capacity.
In the competitive landscape, TSMC has dismissed speculation about entering the 3D DRAM market, with reports indicating that the company remains focused on its core foundry business. This leaves the field open for other players, such as China's CXMT, which is expanding its capabilities and poses a significant threat in the next-generation memory market.
On another front, Qualcomm has named Samsung Electronics and Micron Technology as its primary memory suppliers in its fiscal 2026 annual report, highlighting the importance of these partnerships.
In collaboration with Nvidia, SK Hynix is leveraging AI technology to enhance memory chip simulations. This partnership aims to improve etching-process development and tests of thermal and elastic deformation analysis, crucial for optimizing manufacturing processes as they become more complex.
Memory testing and packaging company ChipMOS Technologies reported its highest profit since 2022, with a 48.4% increase in net income in the third quarter of 2026. This growth reflects the broader trends in the memory market, where demand continues to rise.
Looking ahead, Phison Electronics has secured more than 70% of its targeted 2027 NAND supply, anticipating a surge in AI demand post-Lunar New Year. This strategic move is expected to intensify competition for high-capacity triple-level cell (TLC) and quad-level cell (QLC) products.
As AI data centers expand, Winbond Electronics chairman Arthur Chiao noted that the buildout planned by major cloud service providers for 2027 and 2028 is largely secured. However, he flagged 2029 as a potential turning point, questioning whether funding can sustain such massive investments.
In a strategic acquisition, Winbond will revive the Spansion brand for the NOR Flash and F-RAM business it is acquiring from Infineon Technologies. This US$1.12 billion deal aims to secure top international talent and intellectual property.
Reports indicate that Terafab, backed by Tesla and SpaceX, is planning memory output to rival Samsung's DRAM capacity. However, suppliers and analysts remain skeptical about the feasibility of this ambitious schedule and demand.
Innodisk, a Taiwanese industrial memory maker, reported that AI-related applications now generate more than 40% of its revenue, highlighting the transformative impact of AI on technology markets worldwide.
Finally, Transcend chairman Peter Shu anticipates that DRAM and NAND Flash prices will plateau after stabilizing in the third quarter of 2026. While further price increases seem limited, a decline is unlikely, given the ongoing short supply of DRAM.
