---
title: "Phison CEO Pan Jiancheng: Flash memory shortage will last for 10 years"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/282510186.md"
description: "Phison CEO Pan Jiancheng stated that the shortage of flash memory will continue for the next decade, mainly due to the surge in demand from AI, cloud, PCs, and mobile phones. He pointed out that the demand for NAND Flash will not weaken, even though the new factory's capacity can only increase by 50%. To meet the demand, Phison has initiated a syndicate loan and issued convertible bonds, with inventory exceeding NT$ 50 billion, and plans to increase stockpiling. Pan Jiancheng warned that the gross margin of memory is too high and called for maintaining price stability to promote healthy industry development"
datetime: "2026-04-13T08:00:10.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/282510186.md)
  - [en](https://longbridge.com/en/news/282510186.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/282510186.md)
---

# Phison CEO Pan Jiancheng: Flash memory shortage will last for 10 years

IT Home reported on April 13 that according to Taiwan's Economic Daily, Phison CEO Pan Jiancheng stated in an interview on April 11 that demand for AI, cloud, PCs, and smartphones will surge in the second half of this year, warning that the shortage situation will be "very serious."

Pan emphasized that as long as AI applications do not stop, the demand for NAND Flash will not weaken. He stated, **the speed of AI data generation is advancing at a hundredfold pace**, but NAND Flash manufacturers can only increase production capacity by a maximum of 50% with new factories. **He predicts that this wave of shortages may be difficult to completely resolve within the next decade.**

Pan indicated that in response to the launch of new GPUs from NVIDIA and new products from Apple, **NAND Flash may face a situation in the fourth quarter where "even with money, it will be hard to buy goods."**

▲ Phison announced its main control product PS8365, which supports the latest UFS 5.0 specification.

Phison has also broken its past practice of not borrowing money, launching its first syndicated loan project in March this year, amounting to NT$12 billion (IT Home note: approximately RMB 2.582 billion at current exchange rates), while issuing US$800 million (approximately RMB 5.47 billion at current exchange rates) in overseas convertible corporate bonds (ECB) to fully prepare materials. Phison is also negotiating with customers to request advance payments for fourth-quarter demand to jointly share the high inventory financing pressure.

As of the end of March, Phison's inventory of NAND Flash had exceeded NT$50 billion, and it is now raising over NT$40 billion to increase stock in the second quarter, as the company is very optimistic about strong order momentum this year.

With HBM and NAND Flash prices soaring simultaneously, Pan warned about the phenomenon of memory manufacturers' gross margins soaring above 80%. He pointed out that the current memory costs have risen from $1 to an exorbitant structure of $90 at the end-user level, which is unhealthy for industry development. **He called for maintaining price stability so that manufacturers, system vendors, and consumers can all benefit, rather than skyrocketing prices stifling the industry.**

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