SanDisk: NAND Flash Enters Supercycle in 2026

As AI data centers expand, NAND memory is rapidly becoming a critical component in the AI computing market. While AI's benefits for memory were once limited compared to DRAM, enterprise-grade solid-state drives (eSSD) are now enabling rapid processing and storage of massive datasets, driving NAND prices and sales upward.

Industry sources reveal that SanDisk CEO David Goeckeler noted in the company's recent Q3 earnings report: "Next year will mark the first time data center NAND demand surpasses mobile demand." He added, "NAND demand is exceeding supply, and this trend is expected to continue well into next year."

Other major NAND manufacturers are seeing similar trends. Samsung Electronics highlighted in last month's financial report that even with planned production expansions next year, customer demand will continue to outpace supply, creating a significant gap. SK Hynix also stated that its NAND output for next year is already "fully sold," noting that some customers are now seeking long-term supply agreements.

This imbalance between supply and demand is pushing NAND prices higher. Fixed transaction prices for 128Gb MLC NAND flash used in memory cards and USB drives rose 10.6% in September and surged 14.9% in October—the largest increase in a decade. Reports indicate that Samsung and SanDisk recently decided to raise NAND supply prices by around 10%.

Looking ahead, a next-generation storage technology called HBF is gaining attention. HBF stacks NAND chips in a manner similar to high-bandwidth memory (HBM), aiming to retain HBM's performance benefits while addressing its capacity limitations. SK Hynix and SanDisk have begun joint development of HBF, with production expected to start in 2027.