NOR Flash and SLC NAND production are under threat as capacity gets routed to more profitable products — 'severe undersupply' threatens everyday electronics

NOR flash and single-level cell (SLC) NAND production are facing challenges as more capacity is being diverted to more profitable memory products like HBM, DRAM, and high-capacity NAND. The memory price crisis, driven by the AI boom, has led to a significant increase in prices, with memory costs rising more than sixfold over the past year, according to Morgan Stanley.

This shortage has already been felt in everyday electronics, as contract prices for NOR flash and SLC NAND surged by over 100% in the first half of 2026. Jim Handy, a semiconductor and SSD analyst, warns that the SLC NAND market is under a billion dollars a year, making it unattractive for new investments. The technology giants like Nvidia, Broadcom, and Marvell are consuming most of the semiconductor manufacturing capacity, leaving little for SLC NAND suppliers.

With lead times for manufacturing equipment stretching up to 15 months, it's difficult for smaller suppliers to ramp up production. The memory shortage is expected to persist for at least two years, with NAND prices forecast to reach $279.50 per terabyte in 2026, up from $73.10 in 2025.