Phison is now demanding customers pre-pay with shorter timelines — NAND squeeze affecting everyone in the SSD supply chain

Source: Tom’s Hardware

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Phison now demands pre‑payment with shorter timelines

In a recent letter to its customers, Phison announced that its key suppliers have adjusted payment requirements, asking for advance payments or shortening payment windows. Phison noted that it had been extending financial support for customers’ orders, but now faces the need to pass the cost onto its own clients.

The company, best known for its SSD controllers, also manufactures complete drives for enterprise and automotive customers, among others.

Why the shift is happening

• NAND pricing surge – Recent reports show NAND flash prices have risen 3‑4× compared to Q2 2025, with no sign of near‑term stabilization.

  • Tom’s Hardware: NAND and DRAM prices spike in Q4 2025
  • TrendForce: NAND pricing trends

• Suppliers demanding pre‑payment – SanDisk and Kioxia have already begun requiring pre‑payment for long‑term NAND contracts.

  • TrendForce: Phison follows Kioxia, SanDisk with pre‑payment policy

• Industry‑wide tightening – DRAM makers have similarly shortened contract terms, and Samsung has moved to quarterly NAND pricing renegotiations, hinting at a broader move toward pre‑payment across the memory supply chain.

  • Tom’s Hardware: Samsung and SK Hynix shorten memory contracts

Potential impact on customers

• Case‑by‑case terms – Phison’s letter does not specify which customers will face pre‑payment versus shorter payment windows, suggesting terms will be evaluated individually.
• Prioritization of larger accounts – The company may allocate more favorable terms to larger customers, especially those involved in “rapid changes from AI infrastructure.”

The tightening of payment terms reflects the broader NAND squeeze affecting the entire SSD supply chain, from raw‑material suppliers to end‑device manufacturers.