Transcend Halts SSD Shipments Amid Supply Chain Criticalities
The SSD drive shipments by Transcend have been discontinued. In a recent communique to its clients, the storage manufacturer explained that this decision was being made because of an acute shortage of NAND Flash memory, as key suppliers Samsung and SanDisk have ceased deliveries for the past month, after October.
AI Demand Affecting Supply
The main issue is the demand by large chip makers. As per Transcend, suppliers are currently busily working to fulfill orders for the fast-growing AI sector. Hence, this priority has left almost no NAND Flash memory for the rest of the market.
Surging Prices and Tentative Timelines
Prices have been hit very hard due to this shortage. Transcend mentioned that it was informed of a 50 to 100 percent price hike of components only last week. With that, shipments were stopped on November 7.
Transcend believes that the disruption of shipments and supply chain in this situation is likely to extend for 3-5 months.
