In November, the storage chip giant SanDisk implemented a substantial 50% increase in its NAND Flash contract prices. Prior to this, in October, Samsung Electronics had put DDR5 contract pricing on hold. Following suit, companies like SK Hynix and Micron also took similar actions. This move triggered a disruption in the DRAM supply chain, causing DDR5 spot prices to surge by 25% within just a week.

SanDisk's price hike has sent ripples through the downstream storage supply chain. Storage module manufacturers, including Transcend, Innodisk, and Apacer Technology, have responded by suspending shipments and re-evaluating their pricing strategies. Transcend has halted both pricing and delivery since November 7. The company's chairman pointed out that the burgeoning demand for DRAM and NAND Flash, driven by the AI boom, is the root cause. He also emphasized that the upward trend in NAND Flash prices is merely in its early stages.

The chairman of Innodisk concurred, stating that the explosion in AI applications has led to a storage shortage. He predicted that the upward price trend would persist, with the group's revenue from AI-related application products projected to reach 30% of its total.