Phison's H1 Revenue Surpasses NT$100 Billion for the First Time; AI Order Visibility Extends to H1 2027
Miles Bennett
NAND controller maker Phison Electronics posted NT$108.86 billion in first-half revenue, up over 240% year-on-year and crossing the NT$100 billion mark for the first time; AI order visibility now stretches into the first half of 2027, signaling a shift from short-term demand spikes to a multi-year storage pull.
Revenue more than tripled — where did the money come from?
First-half 2026 consolidated revenue hit NT$108.86 billion, up over 240% year-on-year — the first time Phison has crossed the NT$100 billion threshold.
June alone reached NT$24.85 billion, a new single-month record, up over 300% year-on-year. Q2 revenue was NT$67.89 billion, up 66% quarter-on-quarter.
This means → the surge is not a one-month spike but two consecutive quarters of acceleration, with Q2 nearly 70% above Q1.
AI order visibility into 2027 — what does that signal?
Chairman KS Pua said orders from cloud providers and AI clients remain steady; some AI projects now have order visibility extending into the first half of 2027.
In plain terms = customers are not just placing orders for this year — they have already locked in volumes for the first half of next year. That is rare in the storage industry and points to demand that is structural, not one-off.
This reflects a broader shift: generative AI is moving from model training to large-scale inference, driving sustained long-term storage demand. NAND supply-demand remains tight with no clear sign of easing.
Smartphones are slowing — so why is Phison still growing there?
June mobile-device controller shipments rose 47% year-on-year — driven by market-share gains within existing smartphone customers, not an industry-wide recovery.
PCIe SSD boot-drive shipments — the solid-state drives servers use to start up — surged 5,600% year-on-year, reflecting sustained demand from general-purpose servers, AI servers, and AI networking gear.
This means → Phison's growth engine has shifted from "more phones sold" to "servers and AI infrastructure scaling up massively."
How is the product mix changing?
In Q1 2026, AI-ecosystem modules — covering enterprise SSDs, the aiDAPTIV+ solution, AI PCs, AI server boot drives, and networking products — accounted for 38% of revenue. Phison expects this share to eventually exceed 50%.
Low-margin consumer modules have already fallen below 10% of revenue. Pua said the price-driven retail storage market is no longer a long-term focus; retail-related revenue is expected to drop below 5%.
Put simply = Phison is deliberately cutting its low-margin retail business and redirecting resources toward higher-margin AI and enterprise products.
What is the key milestone for this transformation?
Phison has drawn its own line: AI-ecosystem module revenue share crossing 50%.
This means → if that line is hit on schedule, Phison will have shifted from a "storage-component supplier" to a core-link supplier in AI infrastructure — and the valuation framework changes with it.
The gap from 38% to 50% is still real. Whether Phison closes it depends on the durability of AI inference demand and how much enterprise-market share it can capture.
Content is for reference only, not financial advice.