Storage crisis to hit SSDs with full force now
NAND flash chip prices could almost double in the first quarter. Manufacturers are changing the rules of the game.
(Image: Andreas Wodrich / heise medien)
NAND flash components for SSDs and other storage media are apparently becoming increasingly scarce. As a result, further price increases are imminent, which are likely to affect end customers in particular. Market observer Trendforce, which specializes in storage, estimates that NAND flash prices will rise by 85 to 90 percent in the current first quarter. SSD manufacturers are passing on the additional costs to customers, which is likely to become noticeable in retail in the coming months.
The high demand also comes from cloud hyperscalers building AI data centers. The demand for SSDs is also increasing there because HDDs are scarce. As a substitute, storage, and SSD manufacturers are focusing primarily on models with 122 and 245 TByte capacities, which use QLC components (Quadruple Level Cells, four bits per cell). Such models sometimes swallow an entire silicon wafer or more of storage components.
How storage manufacturers are already benefiting
SK Hynix is said to have benefited most from already rising prices in the fourth quarter of 2025. Trendforce attributes revenue of 5.2 billion US dollars to the manufacturer from NAND flash alone, almost 48 percent more than in the third quarter. The market observer creates better comparability than would be possible through the manufacturers' financial reports: on the one hand, the fiscal year periods differ, and on the other hand, Samsung, for example, does not provide separate key figures for NAND flash.
With this growth, SK Hynix is catching up to world market leader Samsung, which grew the least with ten percent to 6.6 billion US dollars. Apparently, a production changeover is partly to blame, causing Samsung to temporarily produce less storage. The revenue of the five largest NAND flash manufacturers is said to have increased by almost 24 percent to just under 21.2 billion US dollars, mainly due to higher selling prices.
Small manufacturers in trouble
The Taiwanese news agency Digitimes, meanwhile, shares a statement from controller manufacturer Phison to its business customers. It confirms previously speculated new rules of the game in the market: Storage manufacturers such as Samsung, Sk Hynix, and Micron are now demanding payment in advance or very shortly after purchase.
Consequently, buyers can no longer order storage and pay only after selling their own products. This presents challenges, especially for small and medium-sized manufacturers. Those who do not have large cash reserves for storage purchases are potentially facing closure.
Phison has a good insight into the storage market, as the company is not only one of the largest controller manufacturers for SSDs but also produces storage media itself in large quantities. Phison designs SSDs, memory cards, and USB sticks that other companies sell under their brand. In 2025, Phison is said to have purchased 16 exabytes of NAND flash for this purpose.
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