Driven by AI demand, server contract prices were secured ahead of schedule, though slow inventory digestion on the consumer side has kept negotiations at a standstill; meanwhile, the spot market continues to consolidate due to weak end-user demand. Over the long term, major manufacturers are ending their capital expenditure cutbacks and resuming expansion plans. By advancing process technologies, raising the proportion of high-capacity products, and sequentially bringing new fab capacity online, suppliers are going all out to support the massive demand for AI storage.

Key Highlights

• Market Stalemate: Robust demand has led server and CSP clients to lock in contract prices early, but sluggish consumer inventory digestion and resistance to price hikes have stalled negotiations; the spot market remains range-bound with quiet trading due to weak consumer demand.
• Strategic Pivot to Expansion: Following a period of cautious investment, major suppliers have restarted mid- to long-term capacity planning to capture AI storage opportunities, shifting the market toward a new dynamic that prioritizes capacity and performance.
• Dual-Track Drive via Technology and Capacity: Leading manufacturers are leveraging process upgrades and structural adjustments as core growth engines, while scheduling new fab operations over the coming years to ensure continuous and stable capacity support.

Table of Contents

1. Market Update
2. TrendForce’s View
   • New NAND Flash Capacities in 2027-2028

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