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Memory supply too tight to mention

by on04 August 2017

Transcend warns of growing prices

DRAM and NAND flash memory chip prices will rise as supply remains tighter than a jar of peanut butter at a squirrel convention.

Memory module firm Transcend Information says that it will remain that way throughout the third quarter of 2017. This will mean that memory contract prices will continue their growth in the short term.

Tight supply of NAND flash chips, particularly triple-level cells (TLC) used mainly in consumer flash devices, negatively affected Transcend's sales performance in the second quarter.

The company posted revenues $165.5 million in the second quarter of 2017, down 6.3 percent on year.

Transcend is getting around the problem by putting increased focus on niche-market products, the company saw its gross margin increase to 26.2 per cent in the second quarter of 2017 from 21.1 percent a year earlier. Operating profits for the quarter rose 33.8 percent compared to the same period in 2016.

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

Last modified on 04 August 2017
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