Phison, a major controller IC provider for NAND flash, has indicated that it expects the current shortage of NAND flash memory to persist. The company has reportedly booked orders extending into the second quarter of 2027, signaling a prolonged period of high demand for these memory components.
This extended order visibility matters because it suggests that the strong demand for NAND flash is not a short-term trend. A continuing shortage could lead to sustained higher prices for NAND, impacting the cost structures of various technology sectors that rely on these memory solutions.
The mechanism behind this involves the increasing data storage needs driven by factors such as data center expansion and the growing demand for AI-related hardware. These applications require significant amounts of high-performance storage, outstripping current production capacities for NAND flash memory.
This situation primarily moves companies involved in NAND flash manufacturing and those heavily reliant on these components. NAND producers like Samsung (005930.KS), Micron Technology (MU), and Western Digital (WDC) could see sustained pricing power. Conversely, companies that purchase large volumes of NAND for their products, such as PC manufacturers, smartphone makers, and server builders, may face increased component costs.
An AI breakdown of exactly what changed and who it moves.