Winners & losers: As demand from knowledge facilities drives up costs for elements that immediately or not directly rely upon NAND and DRAM, pre-built PCs are actually typically the one approach for shoppers to seek out cheap offers. An govt at an SSD controller producer lately confirmed that it is because PC producers are ordering stock that beforehand went to finish customers.
Throughout Computex 2026, Silicon Movement senior VP Nelson Duann instructed Tom’s {Hardware} that NAND shortages over the previous yr have practically eradicated the direct-to-consumer marketplace for SSDs. The corporate’s SSD controllers, which beforehand ended up in drives offered at retail, now largely go to corporations similar to Dell and Asus.
Historically, corporations like Silicon Movement would promote SSD controllers to module producers similar to Samsung and Western Digital, which develop customized firmware and mix the controllers with NAND from suppliers to supply the SSDs that seem on retailer cabinets. Nonetheless, most DRAM and NAND at present goes towards AI knowledge facilities, leaving shopper merchandise starved.
Consequently, costs for SSDs, PCs, recreation consoles, elements, and different units that require reminiscence or storage have steadily risen. Customers who would usually construct PCs should typically accept pre-built fashions or at the very least bundles to keep away from exorbitant costs on RAM or storage drives.
Duann defined that one motive retail SSD costs have skyrocketed is that PC producers can not get hold of enough NAND from the standard distributors, in order that they’ve turned towards SSD module and controller makers. The dynamic helps stabilize the availability of PCs and smartphones, but it surely makes retail storage drives even scarcer and dearer.
Whereas some PC and laptop computer makers have raised their costs by as a lot as 40% amid the disaster, many NVMe SSDs have seen their costs greater than double. Earlier this yr, Kioxia predicted the extinction of the $50 1TB SSD. Scammers looking for to trick determined buyers have additionally turn into more and more expert at constructing faux SSDs that may idiot benchmark apps, and customers have needed to discover substitutions in sudden locations.
Sadly, the scenario will doubtless stay unchanged within the second half of this yr, and NAND suppliers instructed Duann that it’ll worsen in 2027. NAND provide that does not go towards knowledge facilities is predicted to largely find yourself in higher-end merchandise to offset decrease unit shipments. Consultants count on shortages to proceed into 2028.
