NAND Flash concept stocks Phison(8299) rise as AI wave drives chip demand to new heights

Memory Industry Shortage Causes Weekly Supply Chain Price Increases

The global NAND Flash market has recently experienced a rare supply tightness, with upstream manufacturers regularly raising prices weekly. Observing spot market dynamics, the 1Tb TLC specification has doubled since July, soaring from $4.8 to over $10.7, an increase of more than 100%. The supply chain pressure has led to a shortage wave, extending delivery times. This price hike cycle directly benefits downstream chip design companies’ gross margins and revenue scale.

AI Inference Applications Ignite Enterprise Storage Demand UFS Product Line Fully Upgraded

The rapid expansion of artificial intelligence application scenarios, especially the surge in inference computation needs, has driven exceptionally strong demand for enterprise-grade solid-state drives. UFS(8299) seizes this opportunity; in Q3, the shipment of main control chips not only surpassed last year’s performance but also showed significant quarter-over-quarter growth momentum. The company recently launched new PCIe Gen5 enterprise SSDs at tech exhibitions, simultaneously showcasing AI PC reference designs with built-in iGPU and aiDAPTIV+ technology, targeting enterprise users, large-scale data centers, and ODM manufacturers. Some models are expected to start small-batch supply before the end of the year.

To meet the ongoing strong demand for high-end NAND and enterprise SSDs, UFS(8299) has initiated expansion plans at its Zhunan plant, further increasing capacity beyond its current 3,000 employees, while strengthening collaboration with upstream and downstream partners to ensure supply chain stability. CEO Pan Jiancheng specifically mentioned in a corporate meeting that the current buying momentum driven by AI inference applications is indeed exceptionally strong. In the future, the company will focus on developing mid-to-high-end NAND solutions, avoiding low-price red ocean competition, and consolidating profit growth potential.

Legal Dispute Concludes, Business Fundamentals Unaffected

The highly watched lawsuit over the dismissal of the former chairman has been remanded for retrial by the Supreme Court, overturning the original verdict. The case will be reheard by the High Court. The lawsuit filed by the Securities Investor and Futures Traders Protection Center in 2019 has not affected the company’s operations during the entire legal process, with no impact on finances or business activities. This judicial development removes a major uncertainty for the market.

Stock Price Rises on News, Foreign Investors Optimistic About Future

Benefiting from tight NAND Flash supply and rising AI application demand, UFS8299’s stock opened today at the daily limit-up price. Although profit-taking pressure caused the limit-up to open wider, it successfully held the 1100 NT dollar level by the close, with a daily increase of 4.27%. The Philadelphia Semiconductor Index rose 4.63%, NVIDIA gained 2%, and TSMC ADR increased 3.48%, marking a strong rebound in the overall tech stocks.

Foreign institutional research firms continue to rate UFS8299 as “Buy,” generally believing that the company’s profitability is rapidly improving under the dual influence of the memory price uptrend and demand surge. The investment community maintains a positive outlook on the company’s future development, indicating that NAND Flash concept stocks still have significant growth potential.