NOR Flash Supply Shortages and Price Increases | Procurement Risks and Countermeasures for the Automotive and Industrial Sectors in the Second Half of 2026

Last Updated: September 17, 2026

In the second half of 2026, procurement risks for NOR Flash are rising, particularly in the automotive and industrial equipment sectors.While production capacity is increasingly being allocated to high-value-added memory such as AI and HBM, the spare supply capacity for NOR Flash, which uses mature processes, remains limited. Furthermore, on September 16, 2026, Infineon Technologies announced that it had signed a formal agreement to sell its NOR Flash and F-RAM businesses to Winbond Electronics.In this article, we will outline the steps that purchasing, materials, and SCM managers in Japan should take, separating the facts confirmed through publicly available information—including these latest developments—from the future outlook.

Confirmed Facts

On June 16, 2026, TrendForce reported that the mature-process capacity for NOR Flash and SLC NAND is under pressure because major memory manufacturers are prioritizing high-value-added products such as HBM and advanced 3D NAND.According to the firm’s estimates, the average contract price for NOR Flash rose by 100–120% in the first half of 2026, with even stronger increases observed for high-capacity products. Additionally, the firm noted that longer delivery times and allocation constraints began to occur at a relatively early stage for NOR Flash.

In its industry outlook dated September 10, the firm also expressed the view that the supply-demand gap for high-density NOR Flash will persist due to increased demand from AI servers and automotive applications, as well as delays in capacity expansion.

[Update: September 17] On September 16, 2026, Infineon Technologies announced that it had signed a formal agreement to sell its NOR Flash and F-RAM businesses to Winbond Electronics. The transaction is valued at US$1.12 billion and covers the NOR Flash and F-RAM product lines for automotive, industrial, and infrastructure applications.Subject to regulatory approval, the transaction is expected to close in the second half of 2027. Infineon states that it will retain its SRAM, HYPERRAM, nvSRAM, and radiation-hardened memory businesses.

At this time, neither Infineon nor Winbond has announced any across-the-board price increases, immediate supply suspensions, or changes to delivery schedules for all affected part numbers as a result of this business sale. Therefore, it is not appropriate to conclude that shortages or price increases will occur based solely on the announcement of the sale.However, since there is a possibility that product transfers, order contacts, Product Change Notices (PCNs), quality certifications, and long-term supply policies may be updated in the future, companies that have adopted Infineon’s NOR Flash and F-RAM for mass production must continue to verify the status on a Model Part Number (MPN) basis.

On the other hand, no publicly available primary information has been confirmed indicating that the same rate of price increases, inventory shortages, or extended lead times are occurring across all part numbers from a specific manufacturer. Actual prices, lead times, and availability vary depending on the manufacturer, capacity, package, temperature grade, quantity, and contract terms; therefore, verification on a per-part-number basis is required.

Impact on Procurement

Particular attention should be paid to high-density NOR Flash with long-term supply requirements, which is used in automotive ECUs, ADAS, smart cockpits, industrial equipment, and communications equipment. For products where design changes are difficult to implement, the greater risk lies not only in rising unit prices but also in the inability to secure the required quantities by the desired delivery date.

Furthermore, if existing BOMs are locked to specific manufacturers, capacities, or packages, attempting to find alternatives after supply constraints become apparent may result in insufficient time for evaluation.

Regarding Infineon’s NOR Flash and F-RAM, it has not been confirmed that procurement terms will change immediately as a result of this sale agreement alone. However, as the transaction is set to close in the second half of 2027, there is a possibility that product transfers, distribution channels, quality and certification documentation, and future product roadmaps may be updated.For long-term mass production projects, it is important to confirm as early as possible which business unit or product group the currently adopted MPN belongs to.

Actions Procurement Personnel Should Take

• Conduct an inventory of the NOR Flash currently in use, categorized by manufacturer, part number, capacity, voltage, package, and temperature grade
• Reconcile the required quantities for the next 6 to 12 months with current inventory and outstanding orders
• Check with the manufacturer or authorized channels for the latest delivery dates, pricing terms, and availability of allocations
• For products using Infineon NOR Flash or F-RAM, continuously monitor updates regarding the relevant MPNs, future PCNs, order contacts, quality certifications, and long-term supply policies
• Prioritize risk assessments for high-density products, automotive products, and industrial products requiring long-term supply
• Pre-evaluate second-source candidates, taking into account not only pin compatibility but also electrical characteristics, commands, certifications, and software changes
• When utilizing market inventory, clearly define quality requirements such as date codes, traceability, Certificate of Conformity (CoC), and visual, X-ray, and electrical testing

Practical Comments from AI Components

For NOR Flash, rather than making decisions based solely on information that “the market as a whole is in short supply,” it is important to verify the supply situation on a per-MPN basis. Even for the same capacity, the procurement landscape varies depending on the manufacturer, package, and temperature grade. We recommend starting the evaluation of second sources and next-generation products early, in parallel with securing existing products.

At AI Components, even when securing parts through domestic authorized channels alone is difficult, we handle each case individually—from identifying potential suppliers (including overseas sources) to managing EOL and long-lead-time items, evaluating alternatives, and verifying quality. Since inventory, pricing, and delivery times are subject to change at the time of verification, this article does not guarantee specific conditions.

Check NOR Flash Procurement and Alternatives

If you are having trouble sourcing a specific NOR Flash product, please provide the manufacturer name, part number (MPN), required quantity, desired delivery date, target price, and whether a replacement is possible. We will assess procurement feasibility not only through current channels but also by considering overseas inventory, staggered shipments, and alternative suppliers.