**Consumer SSD Prices Could Soar as AI Drives Unprecedented Demand for NAND Chips**
The NAND memory industry is experiencing an unprecedented surge in demand, following a similar trend in the DRAM segment. Phison, one of the leading suppliers in the market, has described the situation as “shocking.” With the rise of artificial intelligence (AI), the entire supply chain for memory chips is being rapidly transformed, and NAND-based storage devices are now at the center of this disruption.
**AI’s Impact on Memory Supply Chains**
According to Phison’s Q3 earnings call, CEO Khein-Seng Pua highlighted that the current memory cycle is unlike anything the industry has seen before. Not only is DRAM in high demand, but the average selling prices (ASPs) of NAND TLC memory have also surged dramatically — increasing by as much as 50-75% in just a few months. This steep price rise indicates that consumer SSDs and related NAND products are expected to become significantly more expensive in the near future.
**Why Is NAND Demand Soaring?**
The massive spike in NAND demand can be largely attributed to the needs of AI workloads, particularly in the era of inference. In data centers, NAND-based drives are increasingly used to store AI models. Large Language Models (LLMs), for example, are often pre-loaded onto local SSDs to enable low-latency startup and faster access during inference processes. When model updates occur, these changes are quickly reflected on the storage devices, necessitating reliable, high-performance NAND solutions.
Phison describes the current market as having “tight supply,” with NAND TLC prices expected to remain high for some time. The industry had faced a prolonged period of weak demand prior to this surge, but AI inference workloads have introduced a significant and lasting increase in the need for storage technology.
**Industry Caution and Future Outlook**
Phison’s CEO explains that NAND manufacturing facilities had been underutilized for several months. Suppliers were cautious about investing in capacity expansion due to years of low profitability—especially following the COVID-19 pandemic. However, with demand now reaching an “unprecedented” scale driven by AI, it is likely that manufacturers will begin ramping up supply gradually.
> “We believe NAND companies have been reluctant to expand their fabs until now because, over the past five years—from COVID until recently—the profits in the NAND sector have been minimal. But starting now, they are beginning to see profit,” said Phison CEO Khein-Seng Pua.
**What This Means for Consumers**
A similar pattern occurred in the DRAM market earlier this year, where average RAM prices doubled unexpectedly. Given the current trends in NAND pricing, consumers should brace for a significant increase in the cost of SSDs—particularly those with larger storage capacities.
Therefore, if you are considering upgrading your PC’s storage, the upcoming deals season might be an ideal time to make the purchase before prices climb even higher.
**Conclusion**
The AI revolution is not only reshaping how we interact with technology but also driving fundamental changes in the semiconductor market. NAND storage, a crucial component for AI model deployment and data handling, is now facing an unprecedented demand boom. Consumers and industry players alike will need to adapt to this new landscape as pricing and supply dynamics continue to evolve.
https://wccftech.com/think-ram-prices-are-high-wait-until-you-see-whats-happening-in-the-nand-market/