Phison Warns: NAND Memory Prices Skyrocket 50% Overnight, Expected to Climb Further Amid Surging AI Demand

Khein-seng Pua, the CEO of Phison Electronics, has announced a dramatic and sudden increase in NAND memory prices. According to Pua, the cost of these essential chips surged by approximately 50% in a single night, indicating persistent tension in the memory market.

The primary catalyst for this sharp price increase is the escalating demand from the artificial intelligence sector. Companies developing large-scale AI infrastructures and cloud service providers are aggressively acquiring storage solutions, thereby intensifying pressure on existing supply chains. This robust demand is already evident in Phison's financial performance, with corporate SSDs alone contributing about 30% of the company's revenue in the first quarter of 2026.

Despite experiencing high demand and a corresponding rise in revenues, the memory controller manufacturer continues to encounter significant supply chain challenges. Phison has proactively secured long-term agreements with two DRAM and six NAND suppliers. However, the company is also actively negotiating prepayment terms for future supplies to ensure priority access to crucial components, anticipating a potential worsening of current shortages.

The prevailing market conditions have led to a substantial accumulation in the company's inventory. Phison's stock increased from NT$35.6 billion to NT$50 billion between the end of 2025 and the end of February 2026. Nevertheless, Pua underscored that even with this expanded resource base, the company's current holdings are still inadequate to meet the overwhelming demand.

"Our current problem is that both money and inventory are still insufficient."

— Khein-seng Pua, CEO of Phison Electronics