News
Kioxia managing director reports NAND supply sold out for the year
Wednesday, January 7, 2026 at 03:58 AM
Kioxia's managing director stated that NAND supply is sold out for the current year, anticipating continued scarcity into the next year. This suggests increasing prices for SSDs.
Context
A recent Goldman Sachs model projects that NAND average selling prices (ASP) will begin a structural decline starting in 1Q27. While the memory sector is currently riding an AI-driven super-cycle, Kioxia faces unique margin pressure due to its lack of internal DRAM production. Unlike vertically integrated rivals such as Samsung and SK Hynix, Kioxia must procure external DRAM to package with its storage solutions, a cost burden that significantly limits its profit upside relative to competitors.
This disadvantage is particularly acute for QLC NAND SSDs, which require an unprecedented volume of DRAM to manage address mapping and maintain performance. With DRAM costs often outpacing NAND price gains, Kioxia’s margins are squeezed even as the company forecasts a net income recovery to ¥61-89 billion for 3Q FY2025. Investors are monitoring this structural procurement gap as a primary risk that could leave Kioxia's profitability trailing its more self-sufficient peers during market shifts.
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