Transcend has not received NAND memories from Samsung and Sandisk since October

Transcend, a maker of SSD drives and other memory products, issued an alert to its customers that it has not received new NAND chips since October. The company decided to speak openly about the matter after another of its orders received a new postponement, coming from its main suppliers, Samsung and Sandisk.

The reason is the same as always. Increasing demand from data centers has made NAND and DRAM module manufacturers reverse capacity to serve their larger customers. As a result, the supply of products for the domestic market decreases and prices rise.

“The situation worsened in Q4 (fourth quarter) due to growing demand for hyperscale data centers and servers, driven by expansion plans from the largest cloud service providers,” Transcend wrote.

“All the major chipmakers are prioritizing supply to these customers first, and that leads to rising prices and very limited availability. We’re told the cost has increased by 50% to 100% in the last week alone.”

NAND and DRAM shortages begin to kill product lines

Rising prices for storage drives and memory modules are among the first symptoms affecting consumers in a thin market. Now we’re seeing products disappear for good, and it’s starting to become difficult to find something to buy, regardless of the price.

Just yesterday, December 3rd, Micron announced the end of its Crucial line of NAND and DRAM products aimed at the end consumer. In its warning today, Transcend states that the situation will continue for “at least the next 3 to 5 months”.

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“As a result, Transcend’s NAND products (including but not limited to SSDs, SD cards and flash drives) will be impacted for the remainder of Q4. Lead times for supply orders are expected to be longer, and prices are also expected to be significantly higher than Q3 and previously.”

Via: Guru3D