In the sea of negative news surrounding the entire semiconductor industry, NAND Flash might be one of the few major components that will become abundant again. According to the latest report by TrendForce, the storage supply chain is expected to achieve balance by 2027, making it the only area of computing projected to stabilize.

Although demand for NAND Flash and all SSD storage solutions that rely on it is expected to remain in short supply for the rest of 2026, TrendForce forecasts that supply and demand will return to normal in 2027. This year, there will be about 4-6% supply deficit compared to demand.

The supply balance is driven by increased production capacity from NAND Flash suppliers like SK hynix, Micron, Samsung, and YMTC. The increase in wafers produced each month, along with process node upgrades, will significantly boost supply. Weak consumer demand also helps, as many consumers avoid high premiums.

On the enterprise side, server demand continues to rise, consuming most of the NAND Flash supply. Server demand accounts for about 40% of output consumption, while smartphones and notebooks together account for more than 40%. China’s YMTC is expected to increase its global share to nearly 19% this year, but most chips will satisfy internal demand.