Wells says new DRAM fab plans not altering tight supply outlook through 2027

Wells Fargo analyst Aaron Rakers says the firm is starting to hear more about plans to accelerate / expand DRAM fab capacity, although it continues to believe any meaningful output looks to be a late-first half of 2027 / mid-2027 story. Wells notes that SK Hynix has now confirmed plans to build a new HBM advanced packaging and test facility in Cheongju. Wells does not think this changes the current backdrop of an increasingly tight supply-less-than-demand dynamic in DRAM through 2026 and potentially through the second half of 2027. However, the firm does expect investors to become increasingly focused on incremental DRAM capacity expansion looking into 2027. Wells also notes that last week, it was also reported that Samsung (SSNLF) was planning to resume construction on its P5 Pyeongtaek fab next month; expected to result in initial production output in 2028. In its most recent earnings call, Micron (MU) had pulled-in its Idaho Fab number 1 plans to commence production output in mid-2027.