Record-high pricing pushes SSD and memory makers to borrow $880 million just to afford buying chips — Adata, TeamGroup, and others take on substantial debt to survive shortages
Several Taiwanese memory and SSD manufacturers are collectively raising approximately $880 million through various debt instruments to secure chip inventory. Despite record revenues, companies like Adata and TeamGroup are taking on substantial loans and issuing convertible bonds due to soaring DRAM and NAND flash contract prices. This move reflects the increasing cost of maintaining adequate stock as memory manufacturers prioritize high-margin server DRAM and HBM production, with new capacity not expected until late 2027. AI
IMPACT Accelerates demand for high-margin AI-related memory components like HBM, potentially increasing costs for AI infrastructure.