Transcend has not received chips since October, which severely limits product availability. Memory manufacturers have been unable to provide volumes due to industry-wide shortages, which has affected supplies and commitments to customers.
The situation worsened in the fourth quarter due to increased demand from large data centers and hyperscalers. All major chip manufacturers prioritize these customers, which has led to rising prices and extremely limited availability. In the past week alone, we have been informed of cost increases of 50–100%. The trend continues – it is very fast and anomalous.
Transcend predicts that the shortage will last another 3–5 months. Restrictions will remain in late 2025 and early 2026, when the situation will peak. In November, Sandisk raised contract prices for NAND by 50%, which forced module manufacturers, including Transcend, Innodisk, and Apacer, to temporarily halt shipments. Transcend suspended new quotations and shipments from November 7 and officially warns of reduced availability.