Memory chip prices for DRAM and NAND may collapse by mid-2027 as Chinese manufacturers ramp up supply, Acer chairman Jason Chen indicated in remarks reported on Tuesday.

His forecast targets the heart of the current semiconductor cycle: the memory market, where DRAM and NAND prices have surged on tight supply and strong demand from AI datacenter buildouts. Chen's timeline of mid-2027 marks the point at which he expects new Chinese capacity to tip the market from shortage into glut.

Who is making the call?

Chen leads Acer, one of the world's largest PC vendors. That position gives him direct visibility into memory contract pricing, since DRAM and NAND rank among the most expensive components in laptops and desktops. When memory suppliers tighten output, PC makers absorb the cost first.

His assessment carries weight because OEM buyers negotiate with memory producers months ahead of shipment. A vendor chairman forecasting a price reversal signals how buyers at the top of the supply chain read supplier capacity plans.

What does rising Chinese supply change?

China has invested heavily in domestic memory production to reduce reliance on foreign suppliers. As those fabs mature and yields improve, their output adds volume to a market that incumbent producers — Samsung, SK hynix and Micron — have managed carefully through production discipline.

The mechanism Chen describes is straightforward:

• New Chinese fabs increase total industry capacity for DRAM and NAND.
• Supply growth outpaces demand from PCs, servers and devices.
• Prices fall, deflating what Chen characterizes as a price bubble.

If the projection holds, the reversal would arrive by mid-2027, roughly two years of elevated pricing before the correction.

Why does the bubble framing matter?

Calling current conditions a bubble implies prices have detached from underlying demand. Memory markets move in pronounced cycles: shortages push prices up, high prices fund capacity expansion, and the new capacity then triggers oversupply and falling prices.

Chen's comment suggests the industry now sits in the late stage of an upcycle. Buyers negotiating multi-quarter contracts will weigh his timeline when deciding whether to lock in current prices or delay purchases.

What is at stake for PC makers and buyers?

For OEMs like Acer, a burst bubble would cut component costs and relieve margin pressure that rising memory prices have created. For memory suppliers, it would compress revenues after a period of strong pricing driven by limited supply.

End customers could see cheaper PCs, smartphones and storage products once lower DRAM and NAND costs work through the supply chain. The flip side: producers may respond to falling prices by cutting output, which historically restarts the cycle.

How reliable is the timeline?

Mid-2027 depends on how quickly Chinese fabs reach competitive volume and yields for advanced DRAM and NAND products. Memory manufacturing rewards scale and process expertise, and new entrants typically need years to close technology gaps with incumbents.

Chen's forecast nonetheless reflects a buyer's view that supply is coming, regardless of exact timing. The market will watch Chinese capacity announcements, fab utilization rates and supplier capex plans over the coming quarters for confirmation.

Either way, the warning from one of the industry's largest customers puts suppliers and investors on notice: the current pricing environment has an expected expiration date, and it sits within two years.