Phison Electronics CEO Khein-seng Pua has announced a dramatic increase in NAND memory prices, which surged by approximately 50% in a single night. He cautions that the memory market remains exceptionally tight and is expected to see further price escalations.
The primary catalyst for this sharp rise is the overwhelming demand from the artificial intelligence sector. Companies developing large-scale AI infrastructures and cloud service providers are aggressively procuring storage solutions, intensifying pressure on global supply chains. As a result, enterprise SSDs have already contributed a substantial 30% of Phison’s revenue in the first quarter of 2026.
Despite experiencing significant demand and increased earnings, the memory controller manufacturer continues to grapple with supply chain challenges. Phison has established long-term agreements with two DRAM and six NAND suppliers, and is actively negotiating pre-payment terms to secure priority access to critical components, anticipating potential further deterioration of the supply deficit.
This market situation has led to a considerable expansion of the company’s inventory. Phison’s stock increased from 35.6 billion to 50 billion New Taiwan Dollars between the end of 2025 and the close of February 2026. However, Pua underscored that even with this substantial growth, the company’s resources are still insufficient.
“Our current challenge is that we still don’t have enough money or enough inventory.”