TrendForce reports that the NOR flash memory market is undergoing a significant structural shift in supply and demand. Despite increased capital expenditure and production expansion by suppliers, the industry faces constraints that prevent an immediate surge in available supply.
New production capacity requires time-consuming processes, including process scaling, yield ramp-up, product validation, and customer design integration. Consequently, the market for medium and high-capacity NOR flash is expected to remain undersupplied in the near term.
The demand for NOR flash is shifting toward AI servers and aerospace communications. AI servers require significantly more NOR memory compared to traditional servers, particularly for retimer components. Additionally, the aerospace sector favors NOR flash due to its high reliability.
TrendForce forecasts that by the second half of 2026, production growth for high-capacity NOR flash will remain limited. This supply constraint is projected to drive prices for these products up by 90–110%.
