Winbond CEO Warns of Unsustainable Memory Chip Prices

Winbond Electronics CEO Arthur Chiao Yu-Cheng stated that the continuous rise in memory prices has reached an unsustainable level. This surge is driven almost exclusively by demand for artificial intelligence.

According to the executive, only the AI sector can absorb current high costs. Other industry segments, such as computer and smartphone manufacturers, face severe difficulties and a decline in product shipments.

Chiao emphasized that the concentration of component consumption within a single group is unhealthy for the market. He argues that a slowdown would be beneficial to allow companies to assess actual demand accurately.

The Taiwanese manufacturer's leadership fears that unchecked expansion of production capacity will create a future supply glut. If the market correction happens too late, the industry downturn could be much more drastic for everyone involved.

Winbond is experiencing its best financial performance since its founding in 1987. The company projects new records for the coming year despite the systemic risks pointed out by its top executive.