The memory chip market is undergoing a dramatic supply-side transformation triggered by the AI wave, with the resurgence of a seller's market forcing buyers to accept unprecedented and stringent terms. According to multiple sources, including the tech media Digitimes, supply chain insiders reveal that SanDisk has proposed a contract form described by the industry as "unprecedented" to some downstream customers: requiring clients to pay the full amount in cash upfront to secure supply quotas for the next 1 to 3 years. Despite the harsh terms, facing the rigid demand for storage equipment driven by AI infrastructure construction, some Cloud Service Providers (CSPs) are considering accepting these conditions to mitigate future supply disruption risks. Simultaneously, severe price fluctuations are imminent. According to a client report from Nomura Securities, SanDisk plans to increase the price of its high-capacity 3D NAND flash memory chips used in enterprise-grade Solid State Drives (SSDs) by more than 100% month-over-month during March. Nomura Securities points out that this price hike plan is attributed to short-term supply shortages and the medium-term growth in demand for server-grade storage from the AI sector. This past Friday, SanDisk's stock price surged another 13%, continuing to set a new all-time high.

Cash is King: An Unprecedented Full Prepayment System Reportedly, since 2025, NAND major SanDisk has frequently launched price increase offensives, with the recent "order locking" demand breaking industry conventions. Supply chain sources state that SanDisk's "100% cash prepayment" clause aims to secure supply guarantees for 1 to 3 years. This unconventional contract form has caused significant shock within the industry. Typically, supply chain cooperation often employs installment payments or credit term models; full prepayment poses a substantial challenge to the buyer's cash flow. However, reports indicate that due to continuously growing AI demand and the considerable time required for original memory manufacturers to expand production, some cloud service providers urgently needing to expand computing power are compelled to consider accepting these terms. Furthermore, SanDisk has also expanded the scope of such contract negotiations to include PC, smartphone, and module manufacturers. Prices Double: Enterprise Storage Leads the Surge While demanding full payment, product quotes are also soaring. Channel surveys by Nomura Securities show that multiple storage suppliers continue to push prices higher, with enterprise-grade NAND facing the most aggressive increases. Nomura Securities explicitly stated in its report: "SanDisk's NAND quotes for enterprise SSDs could increase by more than 100% month-over-month during March." Nomura Securities analysis suggests that NVIDIA's Inference Context Memory Storage (ICMS) platform is one of the key factors driving enterprise storage demand this year. This platform, based on the BlueField-4 DPU, is equipped with 512 GB SSDs. Estimates indicate that if NVIDIA ships 50,000 VR NVL144 racks annually, this alone would consume approximately 0.439 Exabytes of 3D NAND. Although it remains unclear to what extent the doubling of enterprise product prices will spill over into the consumer market, Nomura Securities warns that since the 3D NAND used in smartphones and PCs is produced in the same fabs as enterprise-grade chips, consumer product prices typically follow the upward trend of enterprise products. Capacity Squeeze: Supply Crisis Under AI Priority The root cause of the current situation lies in a fundamental shift in the capacity allocation strategy of the world's three major original memory manufacturers (Samsung, SK Hynix, Micron). According to related analysis, these manufacturers are directing most of their capacity towards Higher Bandwidth Memory (HBM), which is more profitable and primarily used in the AI market, leading to a significant compression of capacity originally allocated for producing standard DDR4/DDR5 and NAND. This structural shortage has triggered chaos and panic in the supply chain:

Tech Giants Scramble for Supply: Reports indicate that Google's TPUs are highly dependent on HBM, and when seeking additional capacity from SK Hynix and Micron, they received responses indicating it was "impossible." Consequently, Google even dismissed a procurement manager responsible for storage supply and is recruiting a dedicated Global Storage Commodity Manager. Meta also plans to hire a dedicated "Global Procurement Manager for Memory" to strengthen direct ties with upstream wafer fabs.

Panic Stockpiling: To avoid price hikes and shortages, PC brands like Lenovo have begun actively building up inventory, even placing advance orders for their entire 2026 demand.

Chaos Emerges: Market rumors suggest that Samsung's headquarters discreetly dispatched personnel to Taiwan to investigate suspected bribery involving employees and agents, indicating the emergence of irregular profiteering behaviors under extreme shortage conditions.

Currently, buyers with stronger capital are beginning to abandon traditional long-term contract models, opting instead for short contracts and high prices, with instances of "buying available stock regardless of price" even appearing.