Economics

In this memo to clients, we note that the global memory market is showing an accelerated phase of tightening, driven by the aggressive expansion of AI infrastructure as the primary catalyst. Right now, we are tracking two distinct yet deeply connected market developments: massive contract price hikes from major memory foundries, exceeding 100% in recent negotiations, and a surge in automated, large-scale hoarding of DDR5 inventory, which could significantly affect how components are tracked and resold. Collectively, these indicators point to a period of intensified supply chain distortion and heightened competition for memory components.

For the secondary hardware ecosystem, encompassing IT Asset Disposition (ITAD) operators, refurbishers, and component traders, this primary market squeeze could alter current business dynamics.