Silicon Motion has issued a market analysis regarding the global supply and demand dynamics for DRAM and NAND Flash storage components. The company forecasts that the current shortage of NAND Flash memory will persist until 2028 due to ongoing supply constraints.
Memory prices expected to rise in the second half of 2024
The analysis indicates that AI investment is shifting from training workloads to inference tasks. This transition is driving increased demand for memory and storage infrastructure. New production capacity for memory chips takes two to three years to become effective, which limits the industry's ability to quickly address the shortage.
Memory prices are expected to continue rising in the second half of 2024. Large brands with strong procurement advantages, such as Apple, may see significant growth in market share as they navigate these supply challenges. Chinese manufacturer Yangtze Memory Technologies is also making progress in utilizing domestic equipment for production.
The storage market is currently defined by a structural imbalance between supply and the growing needs of the AI sector. The long lead time for new manufacturing capacity means that supply constraints will remain a dominant factor for the foreseeable future.
Discussion
0 comments
Log in to join the thread with a thoughtful take, question, or correction.