The sharp price hikes are not limited to high-end solid-state drives (SSDs), but also impact entry-level models for consumers. According to reports, Shunsuke Nakato, General Manager of Kioxia’s Memory Division, stated that the era of low-priced 1TB SSDs is over, at least until the artificial intelligence (AI) boom subsides.
Shunsuke Nakato said Kioxia’s entire production capacity for 2026 has been sold out, adding, "The era of budget 1TB SSDs priced at around 7,000 Japanese Yen (approx. $45) is gone for good."
His remarks send a clear message, as the surging demand for AI has reshaped the consumer storage market. Since late 2023 or early 2024, 1TB SSDs have not been priced below $50.
SSD prices began to rebound in 2024 and soared in 2025. Today, even the cheapest 1TB SATA SSDs start at around $73, marking a price surge of over 50% compared to the 2023 low.
Unsurprisingly, NAND flash manufacturers are set to benefit the most from the ongoing supply shortage. Kioxia’s 2026 capacity is fully booked, and this trend is expected to continue at least until 2027. Kioxia has adopted an unconventional distribution strategy.
Instead of auctioning NAND flash to the highest bidder or operating on a first-come, first-served basis like other companies, Kioxia has opted for a gentleman’s agreement model based on trust and long-term partnerships with its customers.
"It is physically impossible to simply speed up deliveries or boost production just because orders are piling up," Shunsuke Nakato explained. He added, "We do not simply prioritize supply to the highest bidders; instead, we develop annual supply plans with long-term partners and allocate capacity accordingly."
Shunsuke Nakato believes Kioxia’s factories in Yokkaichi and Kitakami can effectively ease the global NAND flash supply shortage. Reports indicate the Yokkaichi plant leverages AI and IoT technologies to collect approximately 50TB of production data daily, maximizing yield rates. Meanwhile, the Kitakami plant is on track to soon commence full-scale production of Kioxia’s 8th-generation BiCS (BiCS8) flash memory under normal circumstances.
(Reprinted from https://news.eccn.com/）