Compal warns memory prices may remain volatile until 2027

Jan 22, 2026
Technology

Image: Compal’s Chairman Ray Chen and President & CEO Anthony Peter Bonadero pose for photos at a year-end press conference in Taipei, Taiwan, January 22, 2026 (collected; Reuters/Ann Wang)

Staff Report: PNN

Taiwanese notebook and personal computer manufacturer Compal Electronics has warned that the global memory chip prices are rising rapidly and that this is not a short-term trend; rather, the volatility may continue until 2027. This will directly impact the global computer and electronics industry.

According to the company’s forecast, worldwide notebook and personal computer supply in 2026 may decline at a single-digit rate. However, Compal’s CEO Anthony Peter Bonadero stated that despite overall market pressures, the company’s own business could remain relatively stable. He described the current memory chip situation as an exceptional “super cycle”, rarely seen before. According to Bonadero, the rapid expansion of AI data centers has suddenly increased memory chip demand, but supply has not kept pace.

Top memory chip producers worldwide—Samsung Electronics, SK Hynix, and Micron Technology—have already indicated that they are under significant pressure to supply high-bandwidth memory (HBM) for AI servers. Because AI is given priority, supply of memory chips used in general computers may shrink further, according to Compal.

Bonadero also noted that previously, memory chips accounted for about 15–18% of total PC production costs. Currently, this has increased to 35–40%, which will significantly impact production costs and final product prices.

In response, Compal has decided to increase investment in AI-related businesses and AI server production. Chairman Ray Chen stated that AI is considered the main driver of future growth. Under this initiative, a $500 million investment for expansion in the United States has been approved. A factory under construction in Texas may begin AI server production by the end of this year.

Additionally, Compal plans to geographically diversify production to reduce global risk and ensure supply according to customer demand, with preparations underway to expand production capabilities in the United States, Taiwan, and Vietnam.