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

New Report Suggests Helldivers 2 Xbox Release Unlikely

As one of the most popular online games lately, it’s no surprise that Xbox fans…

6 hours ago

November Xbox Game Pass Games Revealed

We've finally reached the month of November, and that means one thing for Xbox users:…

7 hours ago

PS5 Pro Enhanced Games List Revealed

For those who haven't had it on their radar, this week we take a new…

7 hours ago

MSI Overclocker Pushes Kingston Fury Renegade RAM to Record-Breaking 12,196 MT/s

An overclocker from the MSI team has managed to push the Kingston Fury Renegade CUDIMM…

8 hours ago

NVIDIA Pushes SK Hynix to Accelerate HBM4 Production

It seems that NVIDIA wants to launch its next products ahead of time. We are…

8 hours ago

ASUS Unveils New TUF Gaming A2 SSD Enclosure with Enhanced Durability and Speed

The trend of upgrading storage from traditional hard drives to SSDs has become increasingly popular,…

9 hours ago