Phison warns of NAND shortage and rising SSD prices through 2030

Phison Electronics CEO Ken Cheng Pan has warned of an intensifying NAND flash shortage driven by surging demand from AI data centers and cloud service providers. According to Pan, the industry faces a significant supply-demand gap that could persist for years, potentially keeping solid-state drive (SSD) prices elevated through 2030.

While market expectations often assume manufacturers can quickly expand capacity following price increases, Pan noted that industry executives estimate it will actually take approximately four years to move from initial investment to mass production. This timeline is significantly longer than the two-year period many in the market had anticipated.

To mitigate these risks, Phison is building strategic inventory to ensure a stable supply of enterprise-grade SSDs for AI firms and cloud service providers over the next two years. The company is also undergoing a strategic transformation under its ‘Phison 3.0’ plan, shifting focus toward AI storage, edge AI, and AI platforms to reduce reliance on traditional NAND controllers.