Phison Seeks Customer Prepayments as NAND Flash Prices Surge 500% Over Six Months
Source: Techpowerup.com
As NAND Flash pricing has skyrocketed, reaching nearly a 500% increase over the past six months, Phison has reportedly started requiring some customers to make prepayments to control the supply. This means that customers who haven’t even started a Phison order will need to send funds as a form of credit to purchase a set amount of Phison controllers, SSDs, or any other storage products. According to a notice to its customers, Phison has stated that the rapid increase in NAND Flash demand has driven various parts of the storage supply chain to seek alternative payment methods, with a focus on quicker settlements. This means customers must either accept faster contract settlements or use other forms of payment like prepayment credits.
Phison is a company primarily focused on making SSD controllers, which are manufactured at TSMC, Samsung, or other fabs as logic devices, not NAND Flash. The company’s latest E28 controller is produced on TSMC’s 6 nm node, a mature class of semiconductor nodes. This suggests that Phison’s supply chain is largely intact. However, if Phison is arranging NAND Flash purchases on behalf of customers, that could explain why faster settlements are requested. Specific arrangements likely vary by customer and should be confirmed on a case-by-case basis. There might be situations where Phison provides SSD makers with blueprints for SSDs and handles part of the design and supply chain logistics within the company, making the situation more understandable. In such cases, Phison would need to secure a fast contract settlement to ensure the SSD maker gets the best possible price for the NAND Flash that ultimately pairs with a Phison controller. The full statement follows.
