Everpure CEO Charles Giancarlo has published an open letter warning customers of roughly 70 percent price increases since the start of 2026, driven by a global semiconductor shortage fuelled by AI demand. Input costs for key components have surged between 300 percent and 900 percent since mid-2025. The company says it is absorbing a portion of the increases rather than passing them fully to customers.
For the third time in a decade, the technology industry is navigating a major supply chain crisis. This time, it’s AI rather than Covid or tariffs. Everpure CEO and Chairman Charles Giancarlo published an open letter to customers today, warning of sharp price increases driven by a global semiconductor shortage. The average price of Everpure’s products has risen approximately 70 percent since the beginning of the year, a stark reversal after a decade of roughly 20 percent annual price reductions per terabyte.
By some metrics, AI servers require up to eight times more DRAM and three times more NAND than standard servers, causing memory manufacturers to shift capacity toward higher-margin AI components. This directly squeezes supply of conventional chips that storage vendors like Everpure depend on. Not just that: memory suppliers are straying far from fully alleviating the effects by increasing capacity only to a limited degree.
Input costs up 300 percent to 900 percent
Everpure’s situation is more severe than the headline figure suggests. While customers see a 70 percent price increase, Giancarlo revealed that input costs for high-volume semiconductor components, such as CPUs, DRAM, and Flash storage, have surged between 300 percent and 900 percent since mid-2025. Costs roughly doubled between December and January, then doubled or tripled again in February and March.
Absorbing costs rather than passing them on
Everpure is keeping its price increases below actual supply chain cost increases, Giancarlo says. This, he explains, is only possible by operating at the low end of its product gross margin range. Several technical advantages help: its DirectFlash technology extracts more efficiency from flash components, recent improvements in data compression increase effective capacity, and its software-heavy product design limits exposure to hardware cost surges. Quote validity periods have shrunk from 60–90 days to 30 days as costs shift more rapidly.