The AI application boom is prompting major suppliers to accelerate the phase-out of legacy MLC production lines to shift toward advanced processes, leading to a severe supply gap. Constrained by extended equipment lead times, Taiwanese manufacturers are unable to expand capacity to fill the void. Consequently, contract prices are expected to skyrocket, and driven by its increasing scarcity, long-term prices will remain persistently high and resistant to declines.

Key Highlights

• Technological Breakthrough: Compresses attention vectors via dimensionality reduction without retraining, maintaining accuracy while vastly saving memory and accelerating inference.
• Market Reshaping:  In line with the Jevons Paradox, the rapid reduction in inference costs is likely to drive substantial demand for long-context and multi-agent architectures, further accelerating the migration of AI workloads to the edge.
• Co-design Evolution: Surpasses traditional low-bit quantization by altering data representation, paving the way for future hardware-software integration in computational chips.
• Memory Expansion: Relieving cache pressure maximizes current resource efficiency. This sustains basic high-bandwidth memory needs while driving massive capacity upgrades for dynamic random-access memory and flash memory as computational extension layers.

Table of Contents

1. Structural Fracture in Capacity: Contract Prices for MLC Projected at Above 100% Surge as Suppliers Accelerate Phase-Out of 2D Capacity
   • Output Bit of MLC
   • Projected Price Hikes on 2D Products
2. Price Passivation and Prolonged Exorbitance for 2D NAND in Long Term Due to Exclusivity

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