TAIPEI, TAIWAN -- Global NAND Flash supply is expected to outpace demand in the second half of 2027, easing the supply constraints that have persisted throughout 2026, according to TrendForce.

The market research firm said strong AI-driven demand and limited manufacturing capacity have kept the NAND Flash market undersupplied this year. Looking ahead, suppliers are expected to increase bit output through process node migrations, selective capacity additions and production expansion, particularly among Chinese manufacturers, helping restore supply-demand balance.

TrendForce expects server demand to remain the primary growth driver as shipments of next-generation Intel and AMD server platforms accelerate and broader adoption of agentic AI applications fuels additional infrastructure investment. Improvements in CPU availability and more stable memory supplies are also expected to remove production bottlenecks for server manufacturers.

At the same time, demand from smartphones and notebook PCs is forecast to remain weak. Smartphone production is expected to decline 15% to 20% in 2026 before falling again, though at a slower pace, in 2027. Notebook shipments are also projected to decline for a second consecutive year amid high component costs and soft consumer demand.

TrendForce estimates the NAND Flash market will post a 4% to 5% supply deficit in 2026 before shifting into surplus during the latter half of 2027 as supply growth begins to exceed demand.

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