GoKawiilAI memory boom triggers price surge for NOR flash and SLC NAND chips
Analysts at Morgan Stanley, JPMorgan, and TrendForce report that legacy memory types like NOR flash and SLC NAND are facing severe supply shortages as manufacturers redirect production capacity toward more profitable HBM and DRAM chips driven by AI demand. Contract prices for both chip types have already more than doubled in the first half of 2026, with SLC NAND expected to rise another 120-170% in the second half.
GoKawiil's interpretation of the reporting above, not reported fact.
These older, unglamorous memory chips quietly power everyday devices like routers, cars, and industrial equipment, meaning the AI-driven memory crunch is rippling far beyond data centers into consumer electronics and manufacturing. Unlike previous decades of steadily falling memory costs, this represents a structural shift where chipmakers prioritize AI-related products, leaving legacy tech supply chains vulnerable to shortages and price spikes that could raise costs across countless industries.
- NOR flash and SLC NAND, used in routers, cars, and industrial gear, face severe undersupply as AI demand reroutes chip manufacturing capacity.
- Contract prices for both chip types have already surged over 100% in early 2026, with further steep increases expected.
- The shortage marks a break from decades of falling memory prices, driven by manufacturers favoring high-margin AI-related chips like HBM and DRAM.
Western Digital My Passport SSD 2TB — With memory chip prices spiking across the board due to AI-driven demand, it's a smart time to grab reliable external storage before prices climb further. This portable SSD offers fast, dependable storage for backups or expanding your device's capacity without waiting on constrained internal memory supplies.
See Western Digital My Passport SSD 2TB on Amazon → Affiliate link — we may earn a commission on purchases, at no extra cost to you. Product picked by AI based on this article; it is not a tested recommendation.Source: tomshardware.com — Chris Stokel-Walker, 2026-09-18
Published there as: “NOR Flash and SLC NAND production are under threat as capacity gets routed to more profitable products — 'severe undersupply' threatens everyday electronics”
Read the original report → The summary and analysis above are GoKawiil's own, written from reporting by the source above. Facts and quotes belong to the original publisher.