The End of the Cheap SSD Era: Phison and Memory Manufacturers Switch to Full Prepayment
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18:29, 03.03.2026
The AI boom continues to worsen the shortage in the component market. Phison, one of the key players in the SSD controller market, has changed its financial policy and partner requirements.
Full Prepayment Now Required
Due to component shortages and price volatility, Phison has informed customers of a new rule requiring full prepayment to receive products.
Generally, Phison's business model involved supplying controllers along with flash memory, which is currently considered scarce. The company needs to accumulate funds to purchase this hard-to-find component. This is believed to be the primary reason for the new financial policy.
Will Prepayment Become a Trend?
Likely so. Some companies are already practicing this approach. Furthermore, while memory supply contracts used to be concluded quarterly, this interval may now increase to years.
For example, SanDisk offers customers the option to prepay for a year or even three years in advance to guarantee delivery within that timeframe. Many other manufacturers are opening pre-orders as far out as 2028. The server segment will become the primary "customer" for many manufacturers in 2026.
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