SSD Prices Explode Over 130% as AI Devours Supply
The era of inexpensive solid-state drives has decisively ended, with prices for both consumer and enterprise storage surging. Since early 2024, 1TB SSDs priced below $50 have vanished from the market, a stark contrast to the lows seen in 2023. The price hikes have been dramatic across all product tiers; for example, the WD SN700 1TB saw its price increase by 132% to $299.99, while the popular Samsung 990 Pro 1TB rose 83% to $199.99. Even older SATA models like the Samsung 870 Evo 1TB experienced a 51% price increase from their recent lows.
Kioxia Sells Out 2026 Capacity, Rations Supply
On January 22, Japanese storage manufacturer Kioxia confirmed that its entire NAND flash production capacity for 2026 has been sold out. Shunsuke Nakato, managing director of Kioxia's memory business unit, stated that relentless demand from the AI sector is the primary driver. He noted that the days of 1TB SSDs costing around $45 are "gone," signaling a structural shift in the market. In response to the overwhelming demand, Kioxia is forgoing a highest-bidder auction model. Instead, the company is allocating its limited supply based on a "gentleman's agreement" with long-term partners, a strategy that prioritizes supply chain stability over maximizing short-term profits.
Industry-Wide Shortage to Persist Until 2027
The supply constraints extend far beyond Kioxia. Phison's CEO has confirmed that NAND prices have doubled and its own 2026 production is also fully committed. Similarly, SanDisk has reportedly increased its flash memory prices by 50%. This industry-wide sell-out indicates a severe supply-demand imbalance that experts, including Kioxia's leadership, believe will likely continue until 2027. While manufacturers are working to increase output—Kioxia is leveraging AI to boost yields at its Yokkaichi plant and preparing its Kitakami factory for new BiCS8 flash production—these measures are not expected to provide immediate relief. For businesses and consumers, the window for low-cost storage upgrades has closed for the foreseeable future.
