Supply chain sources report SanDisk is approaching customers with proposals for long-term NAND flash supply contracts. These contracts require 100% cash prepayment, terms industry participants note are unprecedented.
This aggressive move signals SanDisk's immense pricing power. The terms underscore the company's strong position, driven by an AI demand surge where data storage supply is far outpaced.
The news surfaces as the data storage sector experiences significant volatility. SanDisk's stock, along with other memory chip makers, retreated on January 8th. This followed an extraordinary run-up, which included a gain of more than 27% on January 6.