HardwareReport Phison Shifts NAND Supply to ‘Prepayment’ Model to Make Sure It Secures the Cash Before Allocating Any Supply to Customers Muhammad Zuhair • at Add on Google Phison's model, with NAND market supply, has now shifted to securing capital upfront from customers as the company navigates a seller's market. NAND Prices Have Climbed a Whopping 500% In Last Year Alone, Driven supply lines, as the role of storage in AI inference has increased dramatically over the past few months. We have already seen NAND spot prices climb significantly over the past few quarters, and for suppliers like Phison, the situation has started to bite into their profit margins. According to a DigiTimes report, Phison is now switching to a 'prepayment' model for NAND, meaning customers will need to provide capital upfront to secure supply. Related Story DRAM & NAND Shortages Will Extend Beyond 2030, Warns Phison CEO, Citing an Industry ‘Structural Shift’ That Will Destroy Consumer Businesses The company said rising NAND prices have sharply increased its funding requirements. To secure a more stable supply, it will discuss prepayment arrangements with customers on a case-by-case basis. - DigiTimes The report states that NAND prices have increased by more than 500% in the last year alone, and based on what we have witnessed in NAND demand, the figure will continue to rise. One of the more important factors behind Phison switching to a 'prepayment' model is the expectation that the role of NAND chips in AI will grow signifcantly moving ahead, given that, with NVIDIA's Vera Rubin, storage is a massive problem being addressed. Back at CES 2026, NVIDIA unveiled its Inference Memory Context Storage (ICMS) platform, targeted for KV Cache offloading and focused on NAND-based storage. NVIDIA & SK hynix Plan to Introduce an “AI SSD” With 10× Higher Performance, Ringing Alarms Over NAND Supply Read all on Phison Shifts NAND Supply to ‘Prepayment’ Model to Make Sure It Secures the Cash Before Allocating Any Supply to Customers
