Team Group warns memory shortages could worsen

Team Group expects the most severe memory supply squeeze between Q4 2026 and Q2 2027, according to its November 2 earnings conference. SK hynix, Samsung, and Micron have sold out their 2027 supply and signed long-term customer agreements, making memory increasingly difficult to source for third parties. Team Group warned that buyers could become unable to secure products regardless of their budgets, rather than simply facing the high prices available today.

CXMT and YMTC supply close to 10% of the memory market, but their output remains insufficient to meet demand. Supply and demand may not reach balance until the second half of 2028 or later, leaving little prospect of a quick recovery in availability.

Team Group’s sales mix has also shifted sharply toward business customers developing AI servers. Its B2B sector now accounts for 64.6%, while B2C represents 35.4%. That reverses the pattern in 2025 Q3, when B2B accounted for 24.6% and B2C for 75.4%. Most revenue now comes from the business sector rather than traditional consumer purchases.