Silicon Motion increases sales of SSD controllers amid NAND shortage, but expects NAND shortages to get worse in 2027 — 'supply conditions will become even worse'
Sales of Silicon Motion’s SSD controllers are record high, but supply of NAND for client applications may get worse in 2027, the company tells us.
The increased demand for SSD controllers, despite existing NAND shortages, indicates a persistent and worsening imbalance in the compute supply chain, driven by ongoing digitalization and data growth.
This highlights the growing fragility in a critical component of the data infrastructure, suggesting potential bottlenecks for future compute and AI advancements if NAND supply cannot keep pace with demand.
The expectation of NAND shortages worsening in 2027 shifts the timeline and intensity of potential supply chain disruptions, impacting planning for all sectors relying on digital storage.
- · Silicon Motion
- · NAND manufacturers with stable supply
- · Companies with diverse supply chain strategies
- · PC component manufacturers
- · Cloud service providers
- · Consumers seeking affordable storage
Increased prices for SSDs and devices relying on NAND storage.
Companies may reallocate R&D and capital expenditure towards developing new storage technologies or securing long-term NAND supply deals.
Geopolitical competition for control over NAND manufacturing and raw material supply could intensify, impacting national digital infrastructure strategies.
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