Phison says AI demand could erase NAND memory's boom-and-bust cycle

AI-driven storage demand is fundamentally reshaping NAND’s cyclical nature. Technically, AI workloads demand higher bandwidth and lower latency, accelerating adoption of UFS 4.0 and CXL-integrated NAND, forcing tighter co-design between controllers and firmware. On the compliance front, tightening U.S. export controls on advanced memory tech compel Taiwan, China-based firms like Phison to localize production or deepen ties with domestic cloud providers, raising operational costs. Competitively, Samsung and Kioxia are pivoting to AI-optimized SSDs, while YMTC leverages this shift to expand its domestic market share. Over the next 12–24 months, if AI server shipments sustain >30% YoY growth, NAND price volatility could narrow from historical ±40% to ±15%, marking the industry’s first move toward demand inelasticity—contingent on sustained global AI infrastructure spending.