Overview
- Silicon Motion executives told reporters at Computex that the retail SSD channel has 'almost disappeared' in the first half of 2026 as supply shifts toward servers.
- NAND suppliers are allocating most new flash to data-center and AI customers under long-term deals, reducing the chips available for consumer PC drives.
- PC makers such as Dell, HP, Acer and Asus can no longer secure enough raw NAND and are increasingly buying finished SSDs from module makers instead of assembling drives themselves.
- The shift has driven retail SSD prices higher and left many consumer SKUs out of stock, prompting vendors to advise customers to buy needed memory and storage sooner rather than later.
- Independent controller developers and module suppliers selling to OEMs are benefiting while retail-focused brands and channels face sharp contractions, and analysts warn shortages could persist into 2027 and beyond unless NAND capacity or allocations change.