NAND flash memory prices are surging, with SanDisk reportedly increasing its contract prices by a massive 50% in November. This has triggered a chain reaction, with major module makers pausing shipments to reassess pricing in a rapidly tightening market.
The price surge is directly linked to AI-driven demand, which is causing a structural shortage. Chipmakers are prioritizing production of high-margin DDR5 and HBM for AI servers, leading to a severe supply crunch for other segments like DDR4, consumer SSDs, and embedded storage. Major manufacturers like Samsung and SK Hynix are reportedly operating at full capacity, with some deliveries scheduled for the second half of next year.
The market outlook suggests this tight supply and high-price environment could persist until 2027. Several memory module companies have already reported explosive earnings growth this quarter, reflecting the favorable market conditions.
ICgoodFind : The AI boom is creating a sustained period of high demand and tight supply in the memory market, benefiting related supply chain players.
