News
AI server demand triggers shortage and capacity expansion in NOR flash supply chain
Sunday, February 15, 2026 at 09:56 PM
Surging AI server demand is driving a shortage in NOR flash memory, used for boot code and firmware. Nvidia GB200 NVL72 systems can incorporate up to 30 NOR devices, with costs per rack expected to rise from $600 to $900. To meet this demand, Winbond plans to increase production capacity by 30-40%, while Macronix reports its capacity is currently full across DRAM, NAND, and NOR lines.
Context
AI server demand is spilling over from DRAM and NAND into the NOR flash market, driven by the critical need for low-latency boot code and firmware storage. Nvidia's latest infrastructure is a primary catalyst, as a single GB200 NVL72 system can now require up to 30 NOR devices. This intensive integration has driven the per-system NOR cost to approximately $600, with industry projections suggesting a further rise to $900 within the next few years as AI hardware complexity increases.
Major suppliers are responding to this supply crunch through aggressive capacity expansion. Winbond aims to increase its NOR flash production by 30% to 40% to satisfy surging orders, reporting that its production lines remain fully booked through 2025. Meanwhile, Macronix reports robust demand for 2D NOR chips used in high-performance computing. These developments signal a prolonged upcycle for the specialized memory sector as global AI data center infrastructure continues its rapid build-out.
Related Companies
Macronix
2337
Nvidia
NVDA
Winbond
2344