Adata, TeamGroup, and others raising fund to survive chip shortages

It is reported that many Taiwanese prominent memory module manufacturers like Adata and TeamGroup are collectively raising over NT$28 billion (around $880 million) through convertible bonds, syndicated bank loans, and private share placements to finance chip purchases. This underscores the escalating financial pressure on downstream players as DRAM and NAND flash contract prices continue climbing quarter after quarter.

Amongst the group, Adata is the largest borrower. It has completed a NT$2 billion convertible bond issuance and secured NT$12 billion in bank loans, and is planning a 30 million-share private placement.

GoldKey Technology, through a combination of bonds and loans, secured NT$4.5 billion, while Team Group and Apacer completed NT$2 billion and NT$1 billion convertible bond issuances, respectively. Meanwhile, Innodisk and Transcend are each preparing NT$3 billion in convertible bond issuances, while Silicon Power is planning a NT$500 million raise.      

The most striking thing is that many of these companies remain highly profitable, yet still need to raise substantial capital simply to maintain adequate chip inventory. In March, Adata reported revenue exceeding NT$10 billion for the first time, and its Q1 total of NT$26.11 billion more than doubled year over year. TeamGroup posted NT$4.92 billion in March revenue, marking a 326% sequential increase. The news source noted that several module makers had already surpassed their entire 2025 revenue totals by April 2026.

The aggressive fundraising reflects the soaring cost of inventory during the ongoing memory price boom. Simon Chen revealed in March that Adata had accumulated NT$30 billion worth of chip inventory by the end of February and aimed to exceed NT$35 billion by the end of March. He also noted that cloud service providers had recently approached the company for long-term supply agreements — something he described as “a rare occurrence.”

Contract prices have risen sharply across every memory category in the last year. TrendForce has estimated that conventional DRAM contract prices rose 90% to 95% quarter over quarter in Q1 2026, with a further 58% to 63% increase expected in Q2. NAND flash contracts climbed roughly 60% in Q1, and TrendForce projected a 70% to 75% increase for Q2. More recent TrendForce data from early May revised mobile DRAM pricing for Q2 upward to 93% to 98% quarter over quarter, as Samsung, Micron, and SK hynix finalize negotiations with customers.

Memory manufacturers continue to prioritize high-margin server DRAM and HBM production over consumer and mobile applications, and new fab capacity isn’t expected to come online in volume before late 2027 at the earliest.

Module makers, which buy finished chips from those manufacturers and assemble them into DIMMs, SSDs, and other products, have limited ability to influence allocation; stockpiling inventory through debt financing is one of the few levers available to them.