March 3, 2026 /SemiMedia/ — NAND controller supplier Phison Electronics has started tightening payment terms with customers as rising NAND flash prices increase its working capital needs, according to supply chain sources.

The company said it will discuss advance payment plans case by case to secure stable supply. Since the second half of 2025, NAND contract prices have risen through several rounds, with cumulative gains over the past six months reaching multiple folds.

Upstream vendors have also shortened credit terms. U.S. NAND maker SanDisk earlier required some customers to prepay in full to lock in long-term supply.

Industry sources said fast growth in AI infrastructure is driving NAND demand higher and forcing companies across the supply chain to hold more cash.

Phison said future orders will gradually move to advance or early payment structures to better secure upstream supply. The company added the change will not alter its overall shipment plans but may affect order priority.