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      NOR Flash Prices Expected to Surge Amid Supply-Demand Imbalance

      TrendForce's recent analysis reveals a significant shift in the NOR Flash memory market, marking the most substantial supply-demand structural change in nearly a decade. The increasing demand from AI-related products is absorbing a considerable amount of capacity, while suppliers are struggling to boost NOR Flash bit output. This imbalance is projected to continue into the second half of 2026, maintaining high overall contract prices for these memory products.

      Despite efforts by suppliers in Taiwan and China to increase capital expenditures and expand production, the new capacity will not immediately translate into market supply. The process of migrating new output, ramping up yields, certifying products, and integrating designs with customers poses challenges that hinder the alleviation of supply shortages in the mid-to-high capacity segment in the short term. Winbond anticipates the strongest bit growth in 2026, driven by advancements in manufacturing processes, while GigaDevice and MXIC are also making adjustments to their production strategies.

      The demand for NOR Flash is expected to be primarily driven by sectors such as AI and aerospace communications, with NOR usage in AI servers significantly higher than in traditional servers. In the first half of 2026, the average cumulative contract price for NOR Flash increased by 100-120%. Looking ahead, prices for products of 256Mb and above may rise by an additional 90-110% in the latter half of the year, while products of 128Mb and below are projected to see a price increase of 10-20% in the fourth quarter.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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