Phison CEO warns: “insufficient funds and supplies” – NAND prices will rise sharply.

Khaein‑Seng Pua: NAND prices rise while memory shortage remains persistent

The CEO of Taiwanese memory controller manufacturer Phison Electronics, Khaein‑Seng Pua, reiterated that the global chip shortage continues to intensify. He noted that NAND chip prices surged by almost 50 % overnight, driven by strong demand from the AI sector and supply constraints.

Key growth drivers
* Demand from the AI sector – new customers for Phison include cloud service giants and “AI hyperscalers.”

* Large SSD sales – 30 % of the company’s revenue comes from enterprise solid‑state drives in Q1.

* Inventory buildup – from late 2025 to the end of February 2026, Phison’s turnover rose from NT$35.6 bn to NT$50 bn (≈US$1.12 bn → US$1.57 bn).

Supply challenges
Despite financial stability, the company faces sourcing difficulties:

* Phison has long‑term contracts with two DRAM suppliers and six NAND manufacturers.

* Negotiations are underway for prepayments to secure priority access to materials if the shortage worsens.

The CEO stressed that “we lack both cash and inventory,” prompting the board to approve a syndicated loan from several banks amounting to US$400–500 mn. These funds will support warehouse stock levels and further research.

Risks of large reserves
Holding substantial inventories carries risk: if the market shifts, prices could plummet sharply. Nevertheless, with Samsung confirming DRAM price hikes of over 100 % and HP acknowledging that memory and storage now account for 35 % of PC costs, Phison feels secure.

aiDAPTIV+ technology
Phison continues to develop its aiDAPTIV+ technology, which optimizes memory usage under AI workloads. The solution boosts the efficiency of GPUs acting as AI accelerators and maximizes limited DRAM capacity in resource‑constrained systems.

Thus, despite rising prices and shortages, Phison is strengthening its position through strategic contracts, financial instruments, and proprietary technological innovations.