Storage buyers should brace for a prolonged period of elevated SSD costs. Phison CEO Pan Chien-cheng stated that price increases are likely to persist until 2030. This forecast signals that the current market volatility is not a temporary blip but a structural shift in the storage industry.
Phison CEO warns that NAND supply constraints will keep SSD costs elevated for years
The root cause lies in the mismatch between supply and demand for NAND flash. AI-driven demand is exacerbating the existing supply-demand imbalance. Manufacturers are struggling to meet the surge in requirements for high-capacity storage solutions.
Production timelines have lengthened significantly, complicating the recovery effort. NAND flash capacity expansion from investment to mass production now takes four years. This duration is double the previously expected two-year cycle, slowing the influx of new inventory.
Phison is adopting a conservative strategy to manage this constrained environment. The company will not liquidate inventory to capitalize on current price hikes. This approach aims to ensure long-term supply stability for key clients rather than seeking short-term profit gains.
This policy decision highlights the priority of supply chain reliability over immediate margin expansion. Buyers can expect consistent pricing pressure as the industry navigates these extended production cycles. The market will likely remain tight until new capacity comes online in the coming years.
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