According to TrendForce analysis, while consumer market demand was exhausted in the first half of the year and the second-half peak season failed to deliver expected results, leading to widespread market expectations of Q4 price consolidation, HDD supply shortages and extended lead times have caused CSPs (Cloud Service Providers) to rapidly shift storage demand toward QLC Enterprise SSDs. This has resulted in a surge of urgent short-term orders, creating significant market volatility. Meanwhile, SanDisk announced a 10% price increase, and Micron suspended quotations due to pricing and capacity allocation considerations, shifting supplier sentiment from conservative to aggressive. Driven by this spillover effect, NAND Flash contract prices across all product categories are expected to rise comprehensively in Q4, with average increases of 5-10%.

TrendForce notes that from the supply perspective, NAND Flash has benefited from production cuts and prioritized inventory reduction in the first half, significantly improving market supply-demand balance and simultaneously alleviating manufacturer inventory and pricing pressures. Except for several major manufacturers planning new facility production starts next year, other companies are concentrating capital expenditure on advanced process upgrades to optimize unit cost structures and focusing capacity on high-margin products, reducing price competition to enhance profitability and providing price support. On the product side, QLC's cost advantages have led to widespread SSD applications, particularly as generative AI drives demand for massive data storage, making major manufacturers increasingly focused on QLC capacity deployment.

From the demand perspective, NAND Flash faced weakened consumer momentum and slower OEM procurement in the second half, with significant finished goods inventory awaiting clearance in distribution channels. However, Server OEMs and CSP operators actively cleared inventory in the first half, and NVIDIA's next-generation Blackwell chips entered volume shipment phase in 2H25, combined with tight HDD supply, driving substantial Enterprise SSD demand growth. Overall, NAND Flash demand maintains positive development despite mixed factors.

**Client SSD** Through production cuts and supply strategy adjustments in 1H25, Client SSD manufacturers have significantly reduced inventory levels, with market supply and demand approaching balance. Additionally, high-performance, large-capacity QLC products continue experiencing supply shortages, further supporting demand.

**Enterprise SSD** SSD suppliers are reassessing 2026 order scales in response to surging customer demand for 120TB+ products and strategically increasing QLC Flash output ratios to accommodate market structural changes. Current market conditions show supplier inventory levels have fallen below healthy standards. Against the backdrop of continued growth in North American AI and general server demand, next year's tight supply situation is becoming increasingly apparent, driving Q4 price increases.

**eMMC/UFS** Under NAND Flash supply chain profit-oriented conditions, compared to higher-profit SSD products, eMMC/UFS faces weak demand, and international manufacturers encounter intense competition from local suppliers in the Chinese market, giving Chinese smartphone brands greater bargaining power. Combined with elevated module manufacturer inventory levels, price competition for orders cannot be ruled out, further compressing upward price movement. However, under manufacturers' urgent need to achieve profitability and offset loss pressures, manufacturers are expected to raise Q4 prices.

**NAND Flash Wafer** NAND Flash Wafer manufacturers face temporary supply gaps during process transitions due to production line adjustments, resulting in decreased bit output. Additionally, to compensate for previous quarters' losses, manufacturers are actively optimizing resource allocation, prioritizing capacity for their own high-margin product lines and further compressing wafer supply to module manufacturers. With expectations of continued enterprise AI investment momentum, manufacturer supply will remain tight, similarly driving Q4 price increases.