A Letter to Our Customers on the Current Supply Chain Crisis

Key Takeaways

• Everpure’s prices rose ~70% YTD, while component costs jumped 300‑900%
• AI‑driven chip demand outstrips fab capacity, extending the supply crunch
• Company leverages simpler hardware, software focus, and compression to offset costs
• Quote terms shifted to 30‑day expirations as market volatility spikes
• Everpure commits to low‑end margin, avoiding profit from the crisis

Pulse Analysis

The semiconductor market entered an unprecedented strain in 2026 as artificial‑intelligence workloads drove demand for high‑performance chips far beyond existing fab capacity. After the COVID‑19 shock of 2021 and tariff‑induced price spikes in 2025, manufacturers now face component price surges of up to tenfold. This imbalance is expected to linger because building new fabs requires billions of dollars and several years, while AI‑centric designs continue to siphon capacity from more commoditized chips used in storage and networking equipment.

Everpure’s response blends cost‑containment with strategic product engineering. By simplifying hardware architectures and shifting value to software, the company reduces the bill of materials needed for each terabyte of storage. Its proprietary DirectFlash™ technology and industry‑leading data compression further stretch raw media capacity, mitigating raw‑chip price pressure. Although Everpure raised prices by about 70% YTD, it claims the increase is well below the actual input‑cost rise, preserving margin at the low end of its historical range and signaling a commitment to share the burden with customers.

For the broader tech ecosystem, Everpure’s stance underscores a shift toward greater pricing transparency and collaborative supply‑chain management. Enterprises buying storage solutions must now factor volatile component costs into total cost of ownership models, potentially accelerating adoption of subscription‑based Evergreen upgrades that extend hardware life. Competitors that react with steeper price hikes or shorter quote windows may lose trust, while those that emulate Everpure’s balanced approach could strengthen long‑term relationships. The ongoing chip shortage will likely keep hardware pricing on an upward trajectory, making strategic sourcing and design efficiency critical competitive differentiators.