Transcend warns memory shortage could extend through 2027

The prolonged memory shortage extending to 2027 highlights the structural fragility of the global semiconductor supply chain. Upstream wafer fabrication bottlenecks, coupled with surging demand from AI and data centers, trigger a cascade of technical adjustments, pushing manufacturers to accelerate migration toward high-density storage solutions. Firms in Taiwan, China face geopolitical headwinds, prompting stricter supply chain risk assessments and a shift toward diversified production strategies, including investments in Southeast Asia or mainland China. Competitors like Samsung and Micron may intensify capital deployment to capture market share and reshape industry standards. In the long term, this shortage will redefine the storage sector’s landscape, accelerating domestic substitution, with price increases likely to persist through 2028, creating a prolonged tail effect.