A notable shift is occurring in the memory market as the demand for NOR flash memory surges, primarily driven by advancements in artificial intelligence (AI). After previous shortages in DRAM and NAND flash, the NOR segment is now facing a supply crisis, largely due to its increasing use in AI server applications. Reports indicate that the average amount of NOR devices used per server rack has skyrocketed to more than 30, a significant rise from the previous range of three to five units.
In a recent article from Taiwan’s Commercial Times, it was highlighted that Nvidia’s GB200 NVL72 system features NOR content per rack currently valued over $600, with projections suggesting it could surge to $900 within two years. This heightened demand is creating fierce competition for NOR production capacity, particularly between AI servers and other embedded applications.
NOR flash is known for its rapid random-access read speeds and high reliability, making it indispensable for critical applications like automotive, cloud computing, and industrial systems. Its robust write endurance also suits applications that require frequent updates, such as over-the-air (OTA) programs. Macronix, the leading global supplier of NOR flash, is expected to announce a significant price increase of around 30% for these chips in the first quarter of 2026, as it has reportedly reduced some NOR production capacity to bolster its MLC NAND flash output.
In the realm of AI, NOR flash plays a fundamental role by providing stable and reliable storage solutions for firmware and boot code necessary for the operation of hardware components like network interface cards and accelerator boards. Its compatibility with advanced computing tasks highlights NOR flash’s importance in powering high-performance computing and AI-driven workloads.
As AI applications evolve, so does the demand for storage technologies that offer higher densities and reliability. The limitations of traditional 2D NOR flash are becoming increasingly apparent, prompting the development of 3D NOR flash technology. This innovative approach stacks memory cells vertically, thus allowing for greater storage density and faster data access, addressing the needs of modern AI applications that require rapid, high-capacity memory solutions.
Despite the promising future that 3D NOR flash holds, broad commercial availability is still several years away, with major manufacturers cautious about investing in NOR technology. Macronix is expected to initiate sampling of 3D NOR devices in late 2026, with full production planned for 2027. Until then, the industry will need to navigate the complexities of 2D NOR flash and the challenges posed by its increasing demand, especially within the AI sector.
This ongoing evolution within the NOR flash memory market not only signifies the growing importance of AI in various sectors but also underlines the necessity for innovative memory solutions capable of supporting the next generation of technological advancements. As the industry adapts, there’s hope that emerging technologies will ultimately satisfy the surging demand and pave the way for more efficient and robust memory solutions.