Q3 2026 Quarterly Market Insights[1] - Flipbook - Page 4
Memory: The Inflation Cycle Is Slowing, Not Ending
HBM is changing the economics of conventional memory. TrendForce expects Q3 conventional DRAM
contract prices to rise 13-18% QoQ and NAND Flash 10-15%, while IDC forecasts 2026 DRAM revenue at
US$418.6bn, up 177% year on year. AI-server procurement is absorbing premium memory capacity first,
leaving mainstream OEMs to compete for what remains.
The Q3 Constraint is concentrated in AI, Memory and Capacity
Regional Market Dynamics
US
Semiconductor policy is moving from incentives to infrastructure: domestic fab
investment, AI compute and critical-material resilience are increasingly being treated as
one supply-chain agenda.
Europe
The EU’s €10bn plan for seven AI gigafactories signals a move beyond wafer
sovereignty towards a complete AI industrial stack, from processors and connectivity to
data centres.
China
Domestic semiconductor momentum is strengthening while export controls and
material restrictions are fragmenting technology flows, increasing the commercial
value of second sources and regional inventory.
Taiwan & Korea
Taiwan remains the advanced-node and packaging centre of gravity, while Korea is
aggressively funding semiconductor capacity as HBM and AI memory become strategic
assets.
Japan
Japan is re-establishing strategic semiconductor capacity through investment in
sensors, advanced manufacturing and ecosystem localisation, strengthening its role
beyond traditional components.
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