News

DRAM and NAND Supplies to Remain Low During Q3

If you’re in the market for RAM or an SSD in the coming months, prepare to pay. Memory chips are set to be in short supply during the third quarter of 2017, according to Transcend. The module maker warns that DRAM and NAND stocks will be understocked, resulting in higher prices. The impending memory crisis already resulted in a 6.3% drop in Transcend’s revenue during Q2.

DRAM and NAND Shortage

DRAM and NAND stock will be low across the board. However, TLC chips, in particular, will be hit hard. DigiTimes’ Josephine Lien and Jessie Shen report:

“Supply of DRAM and NAND flash memory chips is expected to remain tight through the third quarter of 2017, according to memory module firm Transcend Information.

Due to the ongoing tight supply, memory contract prices will continue their growth in the short term, Transcend indicated.

Tight supply of NAND flash chips, particularly triple-level cell (TLC) ones for use mainly in consumer flash devices, negatively affected Transcend’s sales performance in the second quarter. The company posted revenues of NT$5 billion (US$165.5 million) in the second quarter of 2017, down 6.3% on year.

However, with Transcend putting increased focus on niche-market products, the company saw its gross margin increase to 26.2% in the second quarter of 2017 from 21.1% a year earlier. Operating profits for the quarter came to NT$930 million, rising 33.8% compared to the same period in 2016.”

Revenue Down, Prices Up

Transcend projects the DRAM and NAND shortage will impact revenue further. Transcend – and, presumably, other memory providers – will raise prices to compensate. Lien and Shen add:

“Of Transcend’s second-quarter revenues, industrial control products accounted for 43.6%, followed by standard DRAM products with 19%, consumer flash devices 18.9% and strategic products 18.5%.

Transcend reported net profits of NT$776 million for the second quarter of 2017, with EPS reaching NT$1.80.”

Ashley Allen

Disqus Comments Loading...

Recent Posts

Nvidia’s GeForce RTX 5090 Possible Price Revealed

According to a new report, the GeForce RTX 5090 GPU will be very expensive. It…

5 hours ago

AMD Krackan Processor with 6 Zen 5 and Zen 5c Cores for Budget AI Laptops Leaked

A new AMD processor in the form of an engineering model has been leaked in…

5 hours ago

SK Hynix Begins Production of First 321-Layer NAND Chips

SK Hynix has claimed to be the first company to mass-produce 321-layer NAND memory chips.…

5 hours ago

Trust Gaming GXT 609 Zoxa 2.0 PC Speakers

SOUNDS GREAT – Full stereo sound (12W peak power) gives your setup a booming audio…

10 hours ago

PowerA Wired Controller for Nintendo Switch

Special Edition Yoshi design Ergonomic controller shape with Nintendo Switch button layout Detachable 10ft (3m)…

10 hours ago

Logitech G Saitek PRO Flight Rudder Pedals

Fluid Motion: These flight rudder pedals are smooth and accurate that enable precise control over…

10 hours ago