Market Update & Supply Assurance Notice: Navigating Global Chip & Memory Supply Shifts

Dear Customers and Partners,

The global semiconductor industry is undergoing a significant transformation, driven by the artificial intelligence (AI) revolution. Since the second half of 2025, the memory chip market has entered a rare "super cycle," with prices rising across the board for DRAM, NAND Flash, SSDs, and HDDs—a phenomenon unprecedented in recent industry history. Concurrently, upstream wafer capacity remains tight, challenging the stability of the entire supply chain.

We wish to communicate openly about these market dynamics and outline ZynShield's proactive response.

Current Market Landscape: Challenges in a Structural Shift

1. Soaring Memory Chip Prices: The root cause of this price surge is the explosive growth in AI data centers and cloud services. To meet the massive demand for High-Bandwidth Memory (HBM) from high-end AI servers, major chip manufacturers are shifting the majority of their production capacity and capital expenditure towards high-margin products like HBM and DDR5. This directly leads to a supply shortfall for traditional memory products (like DDR4), causing their prices to skyrocket. Industry data indicates dramatic price increases for some DRAM products, and this upward trend is expected to continue into 2026.

2. Changing CPU Supply Dynamics, Pressure on Low-Power Models: This shift in production focus creates a chain reaction. With finite wafer capacity, as resources are prioritized for high-profit HBM and advanced-process CPUs, the production of lower-power, entry-level CPUs like the Intel N100 and J4125 is facing severe constraints.

   • Older processors like the Intel J4125 (launched in 2019) are already manufactured on a 14nm process that is no longer a production priority.

   • Newer, efficient cores like the Intel N100, while popular for mini PCs and light applications, also face supply uncertainty as the industry focuses on higher-margin segments.

This situation, where "high-end products consume capacity, squeezing mid-to-low-end supply," significantly increases the risk of future supply constraints or even stock-outs for the affected CPU platforms.

Our Actions: Proactive Measures to Protect Your Interests

In the face of this complex market environment, ZynShield remains committed to ensuring reliable product supply and safeguarding your long-term interests. We are taking the following proactive steps:

• Forward Stocking & Supply Chain Management: We have been closely monitoring market trends and have initiated a strategic stockpiling plan for key components. Specifically for the affected CPU models and memory parts, we are working to secure production and delivery for existing products by strengthening supplier partnerships and optimizing inventory management.

• Proactive Communication & Risk Advisory: We strongly advise our partners and customers that the supply uncertainty for core components like the Intel N100 and N150 platforms is expected to increase significantly in the coming period, accompanied by potential price volatility. To mitigate the impact of potential supply disruptions on your business or projects, we suggest you consider pre-emptive purchases or building safety stock based on your projected needs.

• Ongoing Innovation & Value Delivery: We continue to focus on developing high-performance AI mini PCs based on advanced platforms like Intel Ultra, ensuring you have access to leading computing power. Simultaneously, we will keep a close watch on market dynamics and adjust our strategies to be your most reliable partner.

Looking Ahead

We believe the current industry fluctuations are an inevitable part of technological advancement and market evolution. ZynShield is committed to navigating these challenges with you through transparent and responsible communication.

Thank you for your continued trust and support. If you have any questions or wish to discuss your procurement plans, please do not hesitate to contact our sales team.

Sincerely,

The ZynShield Team
October 22, 2025