Memory module maker Transcend Information expects its industrial-use flash modules, memory cards and solid-state drives (SSD) to account for 30% of its total revenues in 2011, compared to about 20% in 2010, according to company chairman Peter Shu.
Transcend's industrial memory portfolio, which used to focus on DRAM products, has put more emphasis on NAND flash-based devices and SSDs, Shu indicated. Demand for industrial SSDs, in particular, is expected to boost in 2011, Shu said.
Ensuring a steady source of chips is critical for players in the industrial-use memory segment, which has higher technological barriers, Shu pointed out. Samsung Electronics has been able to provide sufficient support to Transcend, according to Shu.
Making industrial products also helps Transcend yield higher gross margins, though the market is relatively smaller than that for consumer DRAM modules, flash cards and drives, said Shu. Shu added that the potential growth of industrial memory devices can be seen in industrial PC, ATM (automatic teller machine), POS (point-of-sale) and car-use computing.
In addition, Transcend's new plant in Neihu, Taipei will begin operations in March, according to Shu. The facility will grow the proportion of the company's production in Taiwan to 50% from the current 30%.
Shu was quoted in previous reports as saying Transcend's manufacturing site in Shanghai, China would concentrate on OEM production as the soon-to-be-open Taiwan plant, would be dedicated to producing the company's own-brand products.