Silicon Motion increases sales of SSD controllers amid NAND shortage, but expects NAND shortages to get worse in 2027 — 'supply conditions will become even worse'

Silicon Motion has seen a boost in sales of SSD controllers despite the ongoing NAND shortage, with revenues up significantly due to strong demand for high-end devices. The company's sales for Q1 2026 were $342.1 million, a 23% increase quarter-over-quarter and a 105% increase year-over-year, driven by sales of both consumer and enterprise-grade controllers. While demand remains high in the data center sector, Silicon Motion anticipates that NAND shortages will worsen in 2027, impacting supply for consumer applications. Despite the challenging NAND supply situation, major producers will continue to supply flash for consumer products, but the supply-demand gap is expected to widen next year.