AI Demand Disrupts Transcend Storage Production, NAND Supply Constrained
TAIPEI, Taiwan – December 5, 2023 – Transcend Information, Inc. is experiencing production delays across its solid-state drive (SSD), SD card, and flash drive lines due to ongoing constraints in the supply of NAND flash memory chips. The disruption stems from a surge in demand for NAND, driven by the rapid expansion of artificial intelligence (AI) applications and data centers.
The escalating AI boom is diverting a meaningful portion of NAND chip production towards companies specializing in AI infrastructure, leaving manufacturers like Transcend struggling to secure sufficient inventory for their consumer and industrial storage products. this shortage impacts not only Transcend but also major players like SanDisk and Samsung, all vying for limited NAND supplies. the situation highlights the growing tension between consumer electronics demand and the resource-intensive requirements of the burgeoning AI sector.
Transcend confirmed the delays, attributing them directly to difficulties in sourcing NAND chips. The company stated that the AI industry’s increased consumption of NAND is creating a bottleneck, impacting led times and perhaps raising prices for storage solutions.
NAND flash memory is a critical component in SSDs, SD cards, and USB flash drives, serving as the non-volatile storage medium. With AI models requiring massive datasets and high-performance storage, demand for NAND has skyrocketed in recent months. Industry analysts predict the supply imbalance could persist well into 2024, potentially affecting a wide range of consumer electronics and data storage solutions.
consumers and businesses relying on Transcend storage products should anticipate potential delays in fulfilling orders. The situation underscores the interconnectedness of the technology supply chain and the far-reaching consequences of the AI revolution.
