TAIPEI (Taiwan News) — Nvidia’s adoption of low-power memory in its next-generation artificial intelligence servers could open new opportunities for Taiwan’s memory industry, CTEE reported Friday.

The chipmaker is expected to use low-power double data rate 5X (LPDDR5X) memory more extensively in upcoming AI server platforms. This high-performance, energy-efficient memory, currently used in industrial and embedded systems, is poised to expand beyond smartphones and tablets into high-end servers, according to Micron and Bvm.

Market research suggests that a shift from DDR5 to LPDDR in server memory could increase demand for supporting components such as NOR flash and SLC NAND, which are used for boot functions, firmware, controller support, and system management. As server demand grows, Taiwanese memory producers, including Nanya Technology, Winbond Electronics, and Macronix International, may see a new growth trajectory.

These firms are currently benefiting from rising DDR4 prices. While manufacturers are moving toward DDR5 and high-bandwidth memory, DDR4 remains widely used in older systems due to its improved signal quality and energy efficiency.

AI demand, coupled with memory makers' capacity allocations, has tightened the DRAM market, driving strong price increases. Counterpoint Research estimates that DRAM prices have risen around 50% so far this year, and market intelligence firm TrendForce predicts that the DRAM market will continue to face tight supply next year, according to TechNews.

The move to LPDDR in AI servers represents a structural shift in global server memory design. Institutional investors noted that Nvidia began deploying LPDDR5X earlier than expected, starting with the Grace CPU Superchip and Grace Hopper platforms, and continuing with the GB200 Superchip.

This indicates Nvidia is exploring low-power, high-density memory as a partial alternative to DDR5, with the market closely watching potential impacts on the memory industry.

While front-end LPDDR5X production remains concentrated among Samsung, SK Hynix, and Micron, analysts say Taiwanese manufacturers could still benefit at the system level. Although LPDDR5X itself is not a direct market for local wafer fabs, resulting system-level upgrades may boost demand for Taiwan-made memory modules, non-volatile memory products, and backend packaging and testing services.

Local memory stocks led trading Thursday but were volatile following news of Nvidia’s move to adopt LPDDR5X, despite potential long-term gains. The sector accounted for the top three most actively traded stocks, with Nanya falling 2.81% to NT$155 (US$5), Winbond down 2.36% to NT$58, and PSMC rising 0.14% to NT$35.4.