The market for RAM and storage devices has been marked by instability for over a year, largely due to high demand from the artificial intelligence industry. However, the situation with NAND flash is beginning to show signs of improvement.

According to recent analytical reports, the shortage of NAND flash is expected to end next year. Meanwhile, other components such as DRAM continue to face challenges, but the storage market is gradually stabilizing.

NAND Flash Market Forecasts

Analyst reports indicate that the NAND flash market is expected to reach equilibrium in the second half of 2027. This shift is attributed to manufacturers adopting new technological processes, steady production growth, and persistently low demand for consumer electronics. Throughout 2026, the NAND flash market will continue to experience a supply shortage of around 4–5%, with limited supply expected to last until early 2027.

Impact of Manufacturers and Market Dynamics

Chinese manufacturers are anticipated to introduce new production equipment, which will increase output and raise China’s share of the global NAND flash market to approximately 19%. Producers from South Korea, the USA, and Japan are also continuing to modernize their facilities. As consumers cut back on purchases due to high prices, these measures should help balance supply and demand by the end of 2027. It remains uncertain whether prices will return to last year’s levels.

Outlook for the Smartphone Market

It is projected that by the end of 2026, smartphone production will decrease by 15–20% year-on-year, with further declines expected in 2027.

Situation in the DRAM Market

The report was published against the backdrop of ongoing price volatility in the DRAM market, where no signs of stabilization have yet been observed. Nevertheless, analysts predict a sharp drop in DRAM prices in 2028.