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Phison CEO Pan: Flash Supply to Remain Tight Next Year; AI to Drive Semiconductor Growth for Decades
Electronic Technology · Semiconductors · cnyes · 2026-09-04
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Phison CEO K.S. Pua warns of a significant NAND Flash supply gap in 2026, asserting that AI's long-term demand will fuel semiconductor growth for 20-30 years.
What Happened
Tight Flash Supply: Phison CEO K.S. Pua stated that based on discussions with NAND Flash manufacturers, the supply gap is expected to remain severe throughout next year. The current competitive landscape focuses on which companies can secure sufficient resources from suppliers to maintain operational growth.
Long-term AI Demand: Pua believes the AI industry is still in its infancy, with most applications currently limited to the cloud. Given the massive demand for memory and power generated by AI computing, he expects a 20 to 30-year growth cycle for the semiconductor industry, dismissing concerns of oversupply due to short-term capacity expansions.
Pricing and Margin Strategy: Regarding memory prices, Pua emphasized that rapid price surges are unsustainable and detrimental to the industry. With some product margins exceeding 80%, the focus should shift toward technological innovation and value-added services rather than price hikes.
Operational Outlook: As AI computing scales, demand for storage solutions like SSDs will continue to rise. Phison plans to focus on the enterprise AI market over the next three years, leveraging its R&D capabilities to maintain a competitive edge and ensure long-term growth in a stable cost environment.