Periodic/Sector reports
IT Hardware: Company Visit Takeaways From Phison And Winbond
OVERWEIGHT (Maintained)
Analyst
Analyst
Highlights
- We visited Phison, a fabless NAND controller designer and module maker, and Winbond, a specialty DRAM, NOR and SLC NAND supplier, during our Taiwan trip last week.
- Phison is filling about 30% of orders, sees no NAND price decline within five years, and puts memory at 50-60% of a device bill of materials.
- Winbond reported that 3Q26 DRAM contract prices were up 50-60% qoq, expecting 2027 shortages to exceed that of 2026, and will mass produce its CUBE custom stacked memory from 2027.
What's New
Phison (8299 TT)
- A fabless controller designer with three routes to market. Management described the core business as NAND controller design with no fabs and no production staff. The company, at its core, is a fabless NAND controller specialist and based on their NAND controllers, the company also provides fabless services for NAND modules according to their customers’ needs. The company’s product encompasses a wide range of storage types, including eMMC, UFS, SSD, USB Drive, and SD cards.
- Contribution split shows strong growth in AI-related sales. As of 2Q26, Phison generated 38% of its revenue from AI-related products with sales primarily coming from AI infrastructure and AI PCs. It is expected to easily surge to over 50% in the near future. The other “embedded ODM” business contributed to 33% of total revenue, and the rest came from industrial modules (16%), direct NAND controller sales (6%), retail modules (5%) and others (2%).
- Phison specialises in smaller volume, customised NAND modules. While the foundries and large-scale players are responsible for the large volume/mass market projects, Phison specialises in the more niche, highly customised and smaller volume orders, and often acts as a second/third supplier for larger clients. As such, management views its relationship with the larger IDMs as complementary rather than as competitors, as both parties have distinct specialisations within the market, and they benefit from each other’s order wins in most cases. Given that qualification runs from three to six months up to two years, once qualified, price sensitivity is low and customers rarely switch suppliers.
Highlights
- We visited Phison, a fabless NAND controller designer and module maker, and Winbond, a specialty DRAM, NOR and SLC NAND supplier, during our Taiwan trip last week.
- Phison is filling about 30% of orders, sees no NAND price decline within five years, and puts memory at 50-60% of a device bill of materials.
- Winbond reported that 3Q26 DRAM contract prices were up 50-60% qoq, expecting 2027 shortages to exceed that of 2026, and will mass produce its CUBE custom stacked memory from 2027.
What's New
Phison (8299 TT)
- A fabless controller designer with three routes to market. Management described the core business as NAND controller design with no fabs and no production staff. The company, at its core, is a fabless NAND controller specialist and based on their NAND controllers, the company also provides fabless services for NAND modules according to their customers’ needs. The company’s product encompasses a wide range of storage types, including eMMC, UFS, SSD, USB Drive, and SD cards.
- Contribution split shows strong growth in AI-related sales. As of 2Q26, Phison generated 38% of its revenue from AI-related products with sales primarily coming from AI infrastructure and AI PCs. It is expected to easily surge to over 50% in the near future. The other “embedded ODM” business contributed to 33% of total revenue, and the rest came from industrial modules (16%), direct NAND controller sales (6%), retail modules (5%) and others (2%).
- Phison specialises in smaller volume, customised NAND modules. While the foundries and large-scale players are responsible for the large volume/mass market projects, Phison specialises in the more niche, highly customised and smaller volume orders, and often acts as a second/third supplier for larger clients. As such, management views its relationship with the larger IDMs as complementary rather than as competitors, as both parties have distinct specialisations within the market, and they benefit from each other’s order wins in most cases. Given that qualification runs from three to six months up to two years, once qualified, price sensitivity is low and customers rarely switch suppliers.
OVERWEIGHT (Maintained)
Analyst
Analyst
IMPORTANT NOTICE - DISCLOSURES AND DISCLAIMERS
This report is provided subject to, and must be read together with, the full Disclosures / Disclaimers available at this link, which are incorporated by reference into this report. In particular, this report is intended for general circulation and informational purposes only and does not constitute personal investment advice or a recommendation to buy or sell any investment product or security. You should independently evaluate the information and, where necessary, seek advice from a qualified financial adviser regarding the suitability of any investment. Analyst certifications required under applicable regulations, including SEC Regulation AC (where relevant), are included in this report. By accessing, receiving or using this report, you acknowledge that you have read, understood and agreed to be bound by the Disclosures / Disclaimers, as may be amended, supplemented or updated from time to time.
Related articles
Periodic/Sector reports
4 Sept 2026
Automobile - Weekly: 2Q26 Results Review And 2H26 Outlook
Company Coverage
29 Sept 2026
Sunny Optical (2382 HK): NDR Takeaways: 2026 Guidance Reiterated With Pan-IoT And AR Glasses Driving Growth
Company Coverage
16 Sept 2026
Mobvista Inc (1860 HK): A Fast-growing Global AI-driven Adtech Platform
Our latest research
Periodic/Sector reports
30 Sept 2026
China Property: First Central Mortgage Interest Subsidy From 1 Oct 26; Tier 1 Land Supply Up 12% mom In Sep 26
Periodic/Sector reports
29 Sept 2026
Online Travel Agencies: Extended Holiday Window Supports Long-haul And International Travel
Periodic/Sector reports
25 Sept 2026