[News] Taiwanese module maker Transcend Reportedly Sees 40–50% DDR5 Price surge in Q2
Amid recent price corrections in China’s retail DDR5 market that have raised concerns over a potential cooling in the memory cycle, Taiwan-based module maker Transcend pushed back against the narrative. According to Liberty Times, citing Chairman Peter Shu, the company’s actual transactions with key upstream suppliers show no signs of price weakening, with Q2 DDR5 prices still up 40–50% from Q1 levels.
This roughly aligns with TrendForce’s outlook, which projects conventional DRAM contract prices to rise 58–63% QoQ in the second quarter.
Shu, according to the report, said both DRAM and NAND Flash remain in severe shortage, with customers placing near-daily orders amid persistent supply constraints. He added that tightness in DDR4 is intensifying, while NAND Flash shortages are also expected to worsen.
Liberty Times, citing Shu, notes that supply from major vendors such as Samsung and Micron remains constrained, with fulfillment rates still at very low levels. He added that while Transcend has signed long-term agreements (LTAs) with suppliers, full supply commitments cannot be guaranteed under current extreme tightness.
DDR4 and MLC NAND Phase-out Update
Shu also highlighted the ongoing phase-out of legacy memory products, including DDR4 and MLC NAND, by major suppliers. Liberty Times, citing Shu, reports that Transcend is still able to secure DDR4 supply from Samsung and can broadly meet customer demand. However, DDR5 fulfillment is comparatively weaker due to rapidly rising demand, the report notes, adding that Transcend’s record revenue is primarily driven by sharp increases in average selling prices rather than shipment volume growth.
According to the Economic Daily News, Transcend Information reported March 2026 sales on April 9 at NT$5.68 billion. This brought first-quarter consolidated revenue to NT$13.63 billion, setting a new record for the company’s highest-ever quarterly revenue.
On NAND Flash, Liberty Times reports that Transcend’s product mix is now roughly 90% TLC and 10% MLC, with SLC no longer in use. Key suppliers such as Kioxia and SanDisk have either exited or phased out MLC production, further tightening supply, the report adds.
However, Transcend reportedly completed a “last-time buy” of industrial MLC products last year, securing final shipments from Samsung and SanDisk, and currently holds sufficient inventory to cover demand through year-end, according to Liberty Times.
China Capacity Impact Seen Limited
Amid earlier concerns that aggressive capacity expansion could cap further price gains, Economic Daily News, citing Transcend, reports that new output from Samsung, Micron, and SK hynix is unlikely to materialize in the near term, with meaningful supply additions expected only in one to two years at the earliest. While Chinese memory makers continue to expand capacity, incremental output this year is expected to remain limited, leaving the global supply shortage largely intact, the report notes.
Shu, as per Economic Daily News, also noted that Transcend’s core embedded memory customers are mainly based in Europe and the U.S., where quality standards and supply stability are critical. As a result, these customers continue to rely on established international suppliers, with limited adoption of China-origin memory, the report adds.
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(Photo credit: Transcend)
