Transcend Reports 46.5% Net Profit Increase Amid Strong Demand for Memory Chips
Transcend Information Inc's net profit increased 46.5% to NT$11.9 billion in Q2, driven by heightened demand for memory chips. The company's focus on embedded applications and long-term agreements with major chip manufacturers underscore its strategy to capitalize on market opportunities.
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Transcend Information Inc achieved a net profit of NT$11.9 billion (US$367.76 million) for the quarter ending June 30, reflecting a 46.5% increase from the previous quarter and a 27-fold rise year-on-year. The first half of 2023 saw net profit reach NT$20.02 billion, a record for the company.
Demand for non-AI memory chips surged as customers brought forward shipments to enhance inventory levels amid ongoing supply constraints. Embedded applications contributed 63% of revenue, with the company securing long-term agreements with major manufacturers like Samsung Electronics for DDR4, DDR5, and flash memory.
Despite increased inventory and significant price hikes of 40-50%, the company anticipates robust demand in the second half, particularly from sectors such as robotics and electric vehicles. However, challenges in fully meeting demand persist.
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