AI Boom Drives Flash Memory 'Supercycle' in Data Centers
The AI data center boom is driving a significant shift in storage demands, with cloud companies focusing more on inference than model training. Pua Khein-Seng, CEO of Phison Electronics Corporation, predicts a 'supercycle' in the memory world due to NAND flash shortages, which he believes will last for the next ten years.
Pua expects a surge in demand for flash memory, with Solid State Drives (SSDs) potentially accounting for 80% to 100% of data center storage in the future. He predicts that SSD prices will match those of HDDs within the next five to eight years, making SSDs the standard for bulk storage. This prediction outstretches current estimates of a one-year storage squeeze from other industry insiders.
Major buyers, including data centers, cloud service providers like Amazon Web Services and Microsoft Azure, and large-scale enterprises, have been prioritizing flash SSDs since 2020 to compete with HBM-specific GPU platforms. This increased demand has led to price freezes or hikes across flash portfolios. Morgan Stanley has also begun alerting clients to an upcoming 'memory supercycle' driven by HBM and China's entry into the HBM market.
Pua's predictions suggest a significant shift in the storage landscape, with flash memory set to dominate data center storage in the coming years. The AI data center boom is the primary driver for these changes, leading to increased storage demands and flash sales. As NAND flash shortages continue, the industry braces for a 'supercycle' in the memory world.
