Memory shortage continues, Winbond s October revenue increased by more than 30% year-on-year, hitting a 39-month high

Memory giant Winbond announced its consolidated revenue for October, which amounted to NT$8.225 billion, an increase of 3.85% from September and an increase of 34.88% from the same period in 2024, a 39-month high. Cumulatively, in the first ten months of 2025, the consolidated revenue amount was 71.006 billion yuan, an increase of 2.88% compared with the same period in 2024.

Chen Peiming, general manager of Winbond, said recently that due to the recovery of terminal demand, the advancement of new processes, and the structural supply and demand imbalance in the memory market due to technology iteration, Winbond's DRAM (CMS) business has hit a new high in the past three years. The company is optimistic about its long-term growth prospects in the fourth quarter (4Q) and the future. It expects that revenue, shipments (Shipment) and average selling price (ASP) will all experience greater growth and return to the normal growth track.

Chen Peiming pointed out that Winbond Electronics’ DRAM and Flash businesses grew in the third quarter compared with the second quarter. Among them, the DRAM business increased by 18% compared with the second quarter and 33% compared with the same period in 2024. This is the highest point of the DRAM business in the past three years. Although DRAM's ASP is still down by about ten percentage points in terms of annual growth rate, the company previously announced that the lowest point of the DRAM business has passed and is currently continuing to rise.

Chen Peiming also emphasized that although the current price of DDR 5 is relatively low in an attempt to promote market conversion, many applications (such as old servers, PCs, or equipment locked to specific SoC specifications) still require a continuous supply of DDR4. Therefore, many customers are actively seeking to sign multi-year, long-term contracts with manufacturers that can continue to supply DDR4. Winbond believes that DDR4 prices will continue to rise and this structural change will continue for some time, possibly even into 2027.

The latest research report issued by foreign investment company Xiaomo pointed out that Winbond is benefiting from the strong memory cycle and is highly confident in future production capacity expansion. Based on strong product pricing and capacity expansion plans, Winbond's profit forecast has been significantly raised. Among them, the estimated EPS in 2026 was raised by 11% to 4.47 yuan, which is 60% higher than the market consensus. Therefore, the investment rating of Winbond is maintained at "overweight" and the target price is raised to 70 yuan from the original 65 yuan.