NAND Market Supply-Demand Imbalance Exceeds Expectations, Phison Raises Inventory to 500 Billion Taiwan Dollars, Increases Enterprise-Class Business Investment

NightAirdropper · 2026-03-13T07:25:56+00:00

Recently, the NAND storage market has experienced significant volatility, with Phison Electronics' CEO pointing out that original manufacturer quoted prices have skyrocketed, with some products seeing increases of up to 50%. To address supply chain tensions, Phison has launched a multi-dimensional strategy, securing production capacity and expanding inventory while focusing on enterprise-grade products. The company continues to upgrade its technology and is actively developing next-generation chips, striving to gain competitive advantages in high-growth sectors.

NightAirdropper

2026-03-13 07:25:56

Abstract generation in progress

NAND storage market has recently experienced intense fluctuations. Phison Electronics CEO Pan Jiancheng revealed that upstream manufacturers are experiencing rare price surges, with some products increasing by as much as 50% in a single day. This phenomenon reflects that the global storage chip supply chain is facing severe challenges, with supply capacity tightening far beyond expectations, leading to a fundamental shift in industry supply and demand dynamics.

In response to these market changes, Phison Electronics has launched multi-dimensional strategies. The company has signed long-term agreements (LTA) with upstream and downstream partners to lock in capacity, and has expanded inventory to 50 billion New Taiwan Dollars (approximately 11.045 billion RMB), with 97% of this in enterprise-grade products. To ensure supply chain stability, the company is negotiating prepayment mechanisms with key suppliers to secure priority in capacity allocation, focusing on high-end sectors such as data centers.

Adjusting business structure has become a key measure for the company to cope with cyclical fluctuations. This quarter, the contribution of enterprise-grade products to revenue is expected to exceed 30%, achieving a leap from the same period last year. This transformation is especially evident in inventory structure, with consumer retail products reduced to a historic low of 3%, reflecting the company’s strategic move to proactively avoid market risks.

In terms of technological reserves, Phison Electronics continues to invest in high-end storage solutions. Its QLC UFS products have entered testing and validation phases with leading smartphone manufacturers. The enterprise-grade PCIe Gen6 main control chips are scheduled to deliver samples in August, and more advanced PCIe Gen7 generation products are also in development. These technological breakthroughs will help the company seize opportunities in the new storage upgrade cycle, particularly in high-growth areas such as data centers and artificial intelligence, building a competitive advantage.

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