On February 14, 2026, according to news from the Japanese semiconductor industry, due to the surge in demand for AI storage and the shortage of NAND Flash supply, Apple has officially agreed to the price increase terms of Japanese flash memory manufacturer Kioxia: starting from the first quarter of 2026 (January-March), the unit price of Kioxia's NAND Flash purchase will double by 100%, and the price will be dynamically adjusted every quarter according to market conditions, marking a major change in the industry's pricing rules.

I. AI computing power ignites demand for storage, NAND Flash prices rise beyond expectations

The rapid popularization of artificial intelligence technology has led to an explosive growth in demand for large-capacity storage from data centers and AI servers, becoming the core driver of this round of NAND Flash price increases. Global storage capacity remains tight, and the supply-demand gap continues to widen, pushing storage chip prices higher and higher.

Market research firm TrendForce has significantly raised its forecast, increasing the contract price of general-purpose NAND Flash in the first quarter of 2026 from the previously estimated 33%-38% quarter-on-quarter to 55%-60%, far exceeding market expectations. This indicates that the storage industry is entering a period of high prosperity with both volume and price increases.

II. Apple's forced compromises exacerbate pressure on its supply chain.

As a core global consumer electronics manufacturer, Apple previously locked in NAND Flash procurement costs through long-term contracts. Now, under the tight supply situation, it has been forced to compromise, not only accepting doubled prices but also abandoning long-term fixed pricing and switching to quarterly dynamic pricing.

Despite introducing five DRAM and NAND suppliers for the iPhone 17 series in an attempt to strengthen supply chain resilience, it is still difficult to completely avoid cost pressures amid the industry-wide wave of price increases. Analyst Ming-Chi Kuo points out that Apple may need to absorb some of the increased costs itself to maintain product competitiveness, and its service business will become an important buffer against hardware cost fluctuations.

III. Performance Divergence Among Storage Vendors: SanDisk's Profits Surge 672%

Amid the current surge in NAND Flash prices, the performance of leading storage manufacturers has diverged significantly. SanDisk's Q2 2026 financial report shows a 672% year-on-year increase in GAAP net profit, fully benefiting from rising storage prices and explosive demand.

In contrast, Kioxia, having signed numerous low-priced long-term contracts in the early stages, benefited only slightly from the price increase cycle that began in the second half of 2025, resulting in relatively poor performance. However, with its new contract with Apple finalized, Kioxia is expected to gradually realize the benefits of the price increases, reverse its weak profitability, and potentially reshape the competitive landscape of global NAND Flash manufacturers.

IV. Industry Trends: Storage Price Increases Become the Norm, Industry Chain Restructuring

The growth in storage demand driven by AI is characterized by its long-term and structural nature. Coupled with manufacturers controlling production and shifting capacity towards high-end chips, the tight supply of NAND Flash is unlikely to ease in the short term, and the upward trend in prices is clear.

Apple's acceptance of price increases and quarterly price adjustments signifies a shift in the storage industry from a buyer's market to a seller's market, with pricing power returning to the manufacturers. For terminal manufacturers, chip distributors, and spot traders, understanding storage price trends, stabilizing supply channels, and optimizing cost control will become key operational priorities in 2026.

AI-driven surge in storage demand has led to a 55%-60% increase in NAND Flash contract prices. Kioxia's price hikes and SanDisk's soaring performance signal a new shift in the industry! Richpoewerhk.com, deeply rooted in the memory field, provides customers with comprehensive services including spot supply, market analysis, and one-stop solutions to help them navigate market fluctuations.

AI-Driven Storage Demand Surges, NAND Flash Contract Price Increase Revised Up to 55%-60% — Kioxia Raises Prices, SanDisk’s Performance Soars as the Industry Embraces New Changes! RichPower Technology (www.richpoewerhk.com), deeply rooted in the MEMORY field, provides customers with comprehensive services including spot supply, market insight, and one-stop solutions, positioned to help navigate market fluctuations.