Silicon Motion's CEO has warned that memory and SSD shortages could persist until 2028. The company is a major manufacturer of memory controller chips. The prediction comes as AI firms lock up supply through long-term contracts and prepayments.
AI firms lock up supply through long-term contracts
According to Chia-Chang Gou, General Manager of SIMO-US, the focus of AI investment is shifting from training to inference. This shift is driving simultaneous growth in memory and storage demand. DRAM and NAND makers currently meet only 60-70% of total demand. New factories are expected to reach volume production by late 2027 or early 2028.
Memory and SSD prices are expected to rise throughout the second half of 2025. The tight supply and demand situation for DRAM and NAND Flash is expected to be difficult to resolve in the short term.
The forecast highlights the impact of AI demand on the memory and storage industry. Silicon Motion's CEO noted that NAND Flash may be in short supply until 2028. The information was reported by Economic Daily Korea.
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