Driven by the artificial intelligence boom, soaring enterprise storage demand caused suppliers to heavily shift capacity, triggering severe consumer memory shortages and doubling prices. However, with sluggish consumer demand and buyers reaching cost limits, future price hikes are expected to narrow significantly.

Key Highlights

• Capacity Squeeze Triggers Price Surge: AI has driven explosive demand for enterprise storage, prompting suppliers to massively shift capacity. This has caused a severe supply-demand imbalance in consumer chips, leading to a widespread doubling of quotes.
• Forced Acceptance: Despite sluggish consumer markets, buyers accepted harsh pricing to maintain production. Suppliers are phasing out lower-capacity lines, raising bargaining thresholds.
• Sales Backlash: Passing soaring material costs to end consumers stifled sales, forcing downward revisions in shipments and prompting conservative purchasing strategies.
• Moderating Hikes: Memory prices have reached buyer tolerance limits. Amidst weak demand and stalled purchasing momentum, future price increases are expected to narrow significantly.

Table of Contents

1. AI Boom Ignites Explosive Demand for Enterprise SSDs, and Fierce Competition for Production Capacity Has Caused a Doubling of eMMC and UFS Contract Prices
2. eMMC: Extreme Production Capacity Crunch Has Caused MLC and Legacy TLC Products to Double
3. Under this highly imbalanced supply-demand structure, eMMC contract prices experienced staggering increases in 2Q26
4. UFS: AI Applications Continue to Drive Specification Upgrades, but High Costs Dampen Procurement Momentum
5. According to TrendForce’s latest survey, the average QoQ increase in UFS contract prices have reached around 89.1% for 2Q26
6. 3Q26 Outlook: Prices Hit a Tipping Point; Limited End-Market Tolerance Expected to Sharply Curtail Price Hikes
   • eMMC/UFS Contract Price Update

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