The global storage market is ushering in an unprecedented "super cycle," with DRAM and NAND Flash prices surging over 170% year-to-date, directly impacting the embedded computing sector. Driven by the explosive demand from AI data centers and supply chain bottlenecks, ARM-based industrial PCs (IPCs) — core devices for smart manufacturing and edge computing — are confronting a severe challenge with bill of materials (BOM) costs rising 15%-25%. Industry experts warn that if the upward trend persists into 2026, the market could see delivery delays and specification downgrades, hindering industrial automation upgrade efforts.
The storage chip market was initially expected to enter a downturn in early 2025, but the insatiable "thirst" of AI training for high-bandwidth memory (HBM) and DRAM quickly reversed the tide. Starting from April, NAND Flash prices began a modest rebound, and by September, giants like Samsung had cumulatively raised memory chip prices by up to 60%. According to TrendForce's latest report, DRAM contract prices rose 13%-18% in Q4, with a year-over-year increase of 171% — far outpacing gold's growth rate; NAND high-capacity QLC SSDs saw gains exceeding 20%, with a staggering 50% spike in November alone.
This wave of price hikes is no accident but the result of multiple factors converging. First, AI servers' scramble for HBM has crowded out supplies for consumer and industrial-grade DRAM, with HBM's market share projected to jump from 10% to 15%-20% in 2025. Second, global top three vendors (Samsung, SK Hynix, Micron) are prioritizing high-end production capacity, leading to NAND inventories hitting "rock bottom." Silicon Motion Technology's CEO bluntly stated, "2026 will see shortages across HDD, DRAM, HBM, and NAND — something that's never happened before." Geopolitical tensions and export controls have further intensified supply strains, with "purchase limits" emerging in places like Akihabara, Japan — capping individuals at 2 SSDs or 4 memory sticks each.
ARM-based industrial PCs are renowned for their low power consumption and high integration, widely used in robot control, machine vision, and IoT gateways, such as the Moxa MC-7000 and Advantech UBX-010RC series. These devices heavily rely on LPDDR DRAM (system memory) and eMMC/UFS NAND (storage modules), which account for 15%-25% of BOM costs. The price surge is directly inflating overall manufacturing expenses, with ARM IPC procurement prices expected to climb 12%-20% in Q4 2025 to Q1 2026.
Take edge AI scenarios as an example: The Toradex Aquila AM69 module, originally prized for its <10W power draw and NPU acceleration, is now facing delivery delays of 2-4 weeks due to memory shortages. Industrial users report that entry-level ARM IPCs (such as those based on Rockchip RK3568 boards) have jumped from 500 yuan per unit at the start of the year to 650 yuan, compressing profit margins by 30%. On the smart manufacturing frontlines, this translates to stalled AI upgrade plans for HMI (human-machine interface) terminals — originally slated 4K multimedia surveillance systems are now functionally limited by storage downgrades from 64GB to 32GB.
Morgan Stanley analysts note that softening non-AI hardware demand is amplifying the impact, and while the ARM ecosystem benefits from open-source optimizations, it struggles to counter short-term cost pass-throughs in the near term. China's market offers some buffer, with domestic NAND localization reaching 45% — such as Yangtze Memory's CX DDR5 capturing 7% share — but high-end ARM components still depend on imports, keeping supply chain risks elevated.
Confronting the "storage drought," ARM IPC vendors are adopting divergent strategies. Upstream giants like Samsung are securing supplies via long-term contracts, but downstream players like Advantech have cautioned that "if shortages persist, PC and embedded device prices could rise 8%-20% overall in 2026." Some vendors are shifting to efficient designs, such as optimizing SoC integration to reduce external storage reliance or adopting 300-400 layer 3D NAND to lower per-unit costs. The Torizon OS ecosystem, with its 10-year supply guarantees, is emerging as a top "safe haven" for SMEs.
Chinese vendors, seizing the "golden window," are accelerating localization. Companies like Kongxian Technology are promoting low-cost ARM industrial all-in-one machines supporting RTOS real-time systems, with market share projected to rise from 25% to 35% by 2026. However, experts remind that the price surge is a "double-edged sword" — curbing sales by 5%-10% in the short term, but driving long-term technological iteration, potentially pushing the global ARM industrial PC market to $15 billion.
The storage super cycle is expected to linger until 2027, but TrendForce optimistically forecasts that DRAM supply-demand gaps will narrow to 3% in 2026, with price increases easing to 5%-10%. For ARM industrial PCs, this price hike, though painful, will accelerate AI integration and efficient ecosystem development. Industrial users are advised to prioritize stockpiling in-stock spec devices or adopting modular designs for future upgrades.
In the wave of digital transformation, ARM architecture's energy-efficiency edge will continue to shine, but the "invisible shackles" of storage costs serve as a reminder to the industry: Supply chain resilience is the true battleground for the future.
