Taiwan’s two largest memory module makers posted their strongest quarterly results in years, capitalizing on supply constraints that have driven prices sharply higher across the industry. ADATA Technology and Transcend Information reported record profits as artificial intelligence demand shifts production capacity toward high-margin chips, tightening availability of standard memory modules.
ADATA’s third-quarter pretax profit margin reached 17.6%, with after-tax margin at 12.8%, both records for the company. For the first nine months, the New Taipei-based firm earned NT$4.6 billion ($148 million) in pretax profit and NT$3.3 billion in net income, already surpassing full-year 2024 results. Earnings per share for the quarter jumped nearly 200% year-over-year to NT$5.57.
Chairman Simon Chen said cloud service providers’ insistent demand has kept memory markets tight through the fourth quarter, with DRAM contract prices rising faster than expected and NAND Flash pricing climbing steadily. The company noted that 2026 DRAM and HBM production capacity at upstream manufacturers has been fully booked, shifting market dynamics to favor sellers. ADATA raised its full-year revenue target to NT$50 billion ($1.6 billion) and increased strategic inventory above NT$20 billion.
Transcend reported October profit of NT$647 million, or NT$1.51 per share, up 144% from a year earlier. Third-quarter revenue reached NT$4.1 billion, the highest since 2018, with net income of NT$1.5 billion yielding earnings per share of NT$3.52—a ten-year high. The company said margins remain elevated at 45% for the quarter.
Executives at Transcend noted the current memory cycle differs from past upswings, with unusually high profit margins appearing early and strong retention rates suggesting structural demand changes driven by AI applications. The shift has redirected DRAM and Flash capacity toward advanced applications, creating supply pressure for DDR4 and DDR5 modules that pushed prices higher from September onward.
