NAND flash could balance out next year, according to reputable analysis firm

There might finally be some good news for the PC consumer market. A reputed analysis firm has reported that NAND flash shortages will end next year. Even though other components like DRAM are expected to remain in turmoil, it’s great to hear that at least the storage market will be balanced.

The latest report by TrendForce states that by the second half of 2027, the NAND flash market is expected to balance out. This shift is attributed to “ongoing process migrations by suppliers, steady growth in bit output, and persistent weak demand in consumer electronics.” The report adds that through 2026, the NAND flash market will see a 4% to 5% supply deficit, and supply will remain constricted till early 2027.

Chinese suppliers are expected to get new manufacturing equipment online that will boost production and increase global NAND flash contribution to about 19%. Meanwhile, Korean, US, and Japanese suppliers are also expected to continue upgrading their existing production. This, in conjunction with the current state where consumers are avoiding purchasing at such high prices, will allow supply to meet demand by the second half of 2027. Now whether prices come back down to what they were a year ago remains to be seen.

As for smartphones, TrendForce forecasts that by the end of 2026, production will have declined by 15% to 20% YoY, and that 2027 will also see a decline.

This report comes at a time when DRAM prices continue to be all over the place with no balancing out in sight. That said, analysts recently stated that in 2028, there will be a drastic price drop.