DRAM and NAND Supplies to Remain Low During Q3




/ 2 years ago

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.”



Topics: ,

Support eTeknix.com

By supporting eTeknix, you help us grow and continue to bring you the latest newsreviews, and competitions. Follow us on FacebookTwitter and Instagram to keep up with the latest technology news, reviews and more. Share your favourite articles, chat with the team and more. Also check out eTeknix YouTube, where you'll find our latest video reviews, event coverage and features in 4K!

Looking for more exciting features on the latest technology? Check out our What We Know So Far section or our Fun Reads for some interesting original features.

eTeknix Facebook eTeknix Twitter eTeknix Instagram eTeknix Instagram

Check out our Latest Video

  • Be Social With eTeknix

  • Latest Video

  • Features

  • Poll

    Who Is Your Favourite Graphics Card Brand?

    View Results

  • Archives