On September 4, 2025, SanDisk, a globally renowned supplier of storage products, declared that it would increase the prices of its products for all channels and consumer customers by over 10%. This decision was made by SanDisk after comprehensively considering the changes in market supply and demand as well as cost factors.

SanDisk stated that it is currently witnessing strong demand for flash storage products, which is primarily driven by the increasing storage requirements in the fields of artificial intelligence applications, data centers, client-side, and mobile devices. With the rapid development of AI technology, companies such as Meta, Google, Amazon, and Microsoft are projected to invest as much as $297.2 billion in AI capital expenditures, marking a year-on-year increase of 36.8%. Meanwhile, Alibaba, Tencent, Baidu, and other firms are also vigorously advancing the construction of AI infrastructure, all of which have generated significant demand for storage. In addition, the demand for NAND in AI servers has seen a marked increase, with the global bit demand for enterprise-level SSDs expected to grow by at least 30% in 2025. In the consumer market, thanks to national consumer subsidy policies, the sales of consumer electronics such as smartphones and PCs are rebounding. Coupled with users' demand for memory and flash storage upgrades, the market performance of consumer-level storage products is showing signs of recovery.

In a notice, SanDisk also pointed out that the supply and demand dynamics in the storage industry are continuously evolving, and the industry is expected to soon transition into a state of supply shortage. Moreover, recent tariff actions will impact supply availability and increase its operating costs. Previously, SanDisk and other original flash chip manufacturers had announced a production cut plan of 15%-25%. With the implementation of this plan, the reduction in supply volume leads to an increase in corresponding costs, and thus a price rise is only natural.

Impact of the Price Increase

1. Impact on Market Landscape

SanDisk's price increase will undoubtedly have a significant impact on the storage market landscape. On one hand, it may alter the pricing system of the storage market and prompt other storage manufacturers to follow suit with price hikes. For instance, Korean storage giants such as Samsung and SK Hynix may also raise the prices of NAND. If these leading companies all increase their prices, the overall market prices are likely to be pulled up. On the other hand, the price increase may lead some customers to reassess their storage needs and purchasing strategies. Some price-sensitive customers may seek alternative products or delay their purchases.

2. Boost to Industry Development

From the perspective of industry development, SanDisk's price increase also reflects that the storage industry is gradually emerging from the previous downturn and entering a new phase of price recovery. With the impetus of AI technology, the demand for the storage market will continue to grow, bringing more opportunities for storage manufacturers. At the same time, the price increase will help storage manufacturers improve their profitability and encourage them to increase their investment in research and development as well as innovation, driving further development of storage technology.

Future Market Trends and Outlook

SanDisk stated that this price adjustment only applies to new quotations and orders, not to existing commitments. In the future, SanDisk will continue to regularly assess prices and may make further adjustments in the coming quarters. In the long run, the price trend of the storage market will be influenced by a variety of factors, including technological progress, market competition, and the macroeconomic environment. With the continuous deepening and expansion of AI applications, as well as the rapid development of emerging technologies such as 5G and the Internet of Things, the demand for the storage market is expected to remain strong. However, storage manufacturers also need to closely monitor market dynamics and flexibly adjust their production plans and pricing strategies to cope with potential market fluctuations.

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