Phison CEO Warns of 50% NAND Price Increase Due to AI Demand
Phison's CEO reported a 50% price spike in NAND flash memory overnight, driven by high demand from AI data centers. The company's inventory rose from $1.12 billion to $1.57 billion, though it remains insufficient. Phison is now assembling complete drives for cloud service providers and has signed long-term supply agreements with NAND manufacturers to ensure delivery continuity and is negotiating advance payments for priority access. Additionally, the company plans to invest $400-$500 million in R&D and component procurement for future storage technologies.
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Phison's CEO Khein-seng Pua announced a 50% overnight increase in NAND flash memory prices due to soaring demand from AI data centers. In response, Phison has started assembling complete drives for cloud service providers, resulting in enterprise SSDs comprising 30% of revenue.
The company's inventory value has increased from $1.12 billion to $1.57 billion, but remains insufficient to meet demand. Phison has signed long-term supply agreements with six NAND manufacturers and two DRAM suppliers to secure delivery continuity and is negotiating advance payments for NAND chips. To support R&D, the board has approved $400-$500 million in funding, with a focus on next-generation storage technologies.
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