In 1Q26, strong Server and AI demand drove manufacturers to prioritize enterprise products, severely constraining consumer eMMC and UFS supply. Despite the seasonal lull, low inventories and shortage concerns spurred aggressive stockpiling, causing contract prices to surge globally. With supply pressures persisting, prices are unlikely to drop in the near term.

Key Highlights

• Counter-Seasonal Price Surge: Despite the traditional off-season for consumer electronics, eMMC and UFS contract prices rose significantly across the board, with the market dominated by sellers.
• Supply Crowding Effect: Robust Server and AI demand, coupled with higher margins for enterprise products, prompted manufacturers to prioritize enterprise capacity. This severely squeezed consumer supply, worsened by new process limitations.
• Panic Stockpiling: Buyers, facing low inventory levels and fearing future shortages, were forced to accept price hikes and stock up aggressively despite weak end-market demand.
• Market Outlook: OEMs face a dilemma between raising prices or downgrading specs. As long as AI and Server demand remains strong, consumer memory supply will remain tight, with no significant price correction expected in the near term.

Table of Contents

1. Server and AI Demand Remains Robust as NAND Flash Suppliers Prioritize Enterprise Storage Applications; Contract Prices Show Across-the-Board Hikes
2. Prices of Both MLC and TLC eMMC Products Have Surged as Crowding-Out Effect in Product Capacity Allocation Intensifies
3. Price Rally Extends for UFS Products as AI and High-End Applications Squeeze Available Production Capacity
   • eMMC/UFS Contract Price Update

<Total Pages: 3>