The third quarter of 2023 witnessed suppliers dramatically cutting production, which underpinned enterprise SSD prices. The fourth quarter saw a resurgence in contract prices, driven by robust buying activity and heightened demand from server brands and buoyed by optimistic capital expenditure forecasts for 2024. This, combined with increased demand from various end products entering their peak sales period and ongoing reductions in OEM NAND Flash inventories, resulted in some capacity shortages. Consequently, fourth-quarter enterprise SSD prices surged by over 15%. TrendForce highlights that this surge in demand and prices led to a 47.6% QoQ increase in enterprise SSD industry revenues in 4Q23, reaching approximately $23.1 billion.

The stage is set for continued fervor as we settle into the new year and momentum from server brand orders continues to heat up—particularly from Chinese clients. On the supply side, falling inventory levels and efforts to exit loss-making positions have prompted enterprise SSD prices to climb, with contract prices expected to increase by over 25%. This is anticipated to fuel a 20% revenue growth in Q1.

TrendForce reports a substantial 24.5% QoQ increase in NAND Flash industry revenue, hitting US$11.49 billion in 4Q23. This surge is attributed to a stabilization in end-demand spurred by year-end promotions, along with an expansion in component market orders driven by price chasing, leading to robust bit shipments compared to the same period last year. Additionally, the corporate sector's continued positive outlook for 2024 demand—compared to 2023—and strategic stockpiling have further fueled this growth.

Looking ahead to 1Q24, despite it traditionally being an off-season, the NAND Flash industry is expected to see a continued increase in revenue by another 20%. This anticipation is underpinned by significant improvements in supply chain inventory levels and ongoing price rises, with clients ramping up their orders to sidestep potential supply shortages and escalating costs. The ongoing expansion of order sizes is expected to drive NAND Flash contract prices up by an average of 25%.

TrendForce reports a pivotal shift in the NAND Flash market for 3Q23, primarily driven by Samsung's strategic decision to reduce production. Initially, the market was clouded by uncertainty regarding end-user demand and fears of a subdued peak season, prompting buyers to adopt a conservative approach with low inventory and slow procurement. However, as market leaders like Samsung implemented substantial production cuts, buyers' attitudes shifted toward a more aggressive procurement strategy in anticipation of a market supply decrease. This led to a stabilization and even an uptick in NAND Flash contract prices by quarter-end, driving a 3% QoQ increase in bit shipments and culminating in a total revenue of US$9.229 billion, marking an approximate 2.9% increase.

The story unfolds with Kioxia and Micron—the only two to witness a dip in revenue rankings this quarter—while Samsung maintained its robust performance. Despite sluggish demand in the server sector, Samsung's fortunes rebounded thanks to a boost in consumer electronics, especially with high-capacity products in PCs and smartphones. Samsung emerged from a trough in Q3, with strategic inventory replenishments fueling further strategic stocking, and a shift in operational focus toward maximizing profit. This led to a minor 1-3% decrease in shipped bits, but a 1-3% increase in ASP, stabilizing Q3 NAND Flash revenue at US$2.9 billion.

With a simple mod, Storage Review got a Valve Steam Deck handheld gaming console to work with the world's highest capacity SSD, the mammoth 61.44 TB variant of the Solidigm D5-P5336. At its core, the Steam Deck is a highly compacted x86-64 PC powered by an AMD Ryzen mobile processor that features an industry standard PCIe interface, which it uses for an onboard M.2-2230 NVMe SSD. Storage Review used a simple adapter that converts M.2 to U.2—the interface of the D5-P5336—and the Steam Deck just worked.

Out of the box, the Steam Deck uses Valve's SteamOS, although it's fairly straightforward to install Windows, and get the Steam application to present its user interface (with which you can play just about any Windows PC game that's not yet available on SteamOS). A quick benchmark with KDiskMark (the Linux analog of CDM) sees the D5-P5336 post sequential read speeds of 3.6 GB/s, with 2.8 GB/s sequential writes. There's a catch here, though. It's not practical to lug the D5-P5336 along with your Steam Deck, the Solidigm drive is designed for servers, and besides the U.2 connection, requires a power input that a U.2 enclosure can provide.

Solidigm today announced the D7-5810, an enterprise SSD for extremely intensity write workloads. Such a drive would be capable of write endurance in the neighborhood of 50 DWPD. For reference, the company's D7-P5620, a write-centric/mixed workload drive for data-logging, and AI ingest/preparation, offers around 3 DWPD of endurance, depending on the variant; and the read-intensive drive meant for CDNs, the D5-P5336, offers around 0.5 DWPD. Use cases for the new D7-P5810 include high performance caching for flash arrays dealing with "cooler" data; high-frequency trading, and HPC.

Solidigm D7-P5810 uses SK hynix 144-layer 3D NAND flash that's made to operate in a pure SLC configuration. The drive comes in 800 GB and 1.6 TB capacities, and offers 50 DWPD over an endurance period of 5 years (4K random writes). More specifically, both models offer 73 PBW (petabytes written) of endurance. The drive comes in enterprise-relevant 15 mm-thick U.2 form-factor, with PCIe Gen 4 x4 interface, with NVMe 1.3c and NVMe MI 1.1 protocols.

TrendForce's latest research paints a vivid picture: Q2 saw the NAND Flash market still grappling with lackluster demand and being significantly outpaced by supply. The ASP of NAND Flash also took a hit, tumbling 10-15%. Nevertheless, there was a silver lining as bit shipments grew by 19.9% QoQ from a low baseline in 1Q23. To sum up, the Q2 landscape of the NAND Flash sector witnessed a 7.4% QoQ growth in revenue, reaching US$9.338 billion.

From Q2, Samsung began reining in production with a further squeeze expected for the third quarter. With inventories set to thin out, price hikes loom on the horizon, possibly offering a remedy to the chronic supply-demand imbalance. Yet, a crowded supplier landscape in the NAND Flash sector means that many players, faced with hefty inventories, will likely continue aggressive sales into Q3. Forecasts suggests a deceleration in ASP decline for NAND Flash products in Q3 to 5-10%. Riding the stockpiling momentum for the high season, bit shipments are set to rise, propelling Q3 revenue growth past the 3% threshold.

Recently, the spot market for NAND Flash chips has seen a rise in active price inquiries for certain products, a movement driven by successful increases in wafer contract prices. TrendForce reports this uptick primarily stems from negotiations in late August between NAND Flash suppliers and key Chinese module makers. These discussions led to a new wafer contract that successfully boosted the price of 512 Gb wafers by approximately 10%.

Other suppliers have also raised prices for their comparable products, signaling a shift in supplier sentiment: they are now less inclined to finalize deals at lower prices. This change has contributed to a short-term surge in the wafer spot market. Nevertheless, whether this surge in procurement is supported by actual end-user demand remains uncertain, as these orders have arisen in reaction to adjustments in supply-side pricing.

TrendForce research reveals that, due to the impacts of high inflation and economic downturn, CSPs are adopting more conservative strategies when it comes to capital expenditure and consistently reducing their annual server demand forecasts. Currently, CSPs in China have reported a decline in cloud orders compared to last year, leading to a subsequent decrease in annual procurement volumes for enterprise SSDs. In North America, some clients have postponed mass production timelines for new server platforms while ramping up investments in AI servers. These factors have resulted in enterprise SSD orders falling below expectations. Consequently, global enterprise SSD revenue hit an all-time low in the second quarter, totaling just $1,500 million—a QoQ decrease of 24.9%.

Demand for AI servers remains strong in the third quarter, while orders and shipment momentum for general-purpose servers have yet to show signs of recovery. This continues to put pressure on the purchasing volume of enterprise SSDs, and annual bit volume is expected to be lower than last year. Meanwhile, vendors have once again reduced capacity utilization to slow down inventory growth. Server customers still maintain high inventory levels, and their purchasing momentum remains insufficient. This is expected to lead to an approximate 15% QoQ decline in the average price of enterprise SSDs in the third quarter, which may further result in a lackluster revenue performance for the peak season.

Supermicro, Inc., a Total IT Solution Provider for Cloud, AI/ML, Storage, and 5G/Edge, is delivering a high-throughput, low latency E3.S storage solutions supporting the industry's first PCIe Gen 5 drives and CXL modules to meet the demands of large AI Training and HPC clusters, where massive amounts of unstructured data must be delivered to the GPUs and CPUs to achieve faster results.

Supermicro's Petascale systems are a new class of storage servers supporting the latest industry standard E3.S (7.5 mm) Gen 5 NVMe drives from leading storage vendors for up to 256 TB of high throughput, low latency storage in 1U or up to a half petabyte in 2U. Inside, Supermicro's innovative symmetrical architecture reduced latency by ensuring the shortest signal paths for data and maximized airflow over critical components, allowing them to run at optimal speeds. With these new systems, a standard rack can now hold over 20 Petabytes of capacity for high throughput NVMe-oF (NVMe over Fabrics) configurations, ensuring that GPUs remain saturated with data. Systems are available with either the 4th Gen Intel Xeon Scalable processors or 4th Gen AMD EPYC processors.

Solidigm over the weekend announced the Solidigm D5-P5336 line of enterprise SSDs. The company earns bragging rights for having the highest capacity among production SSDs, with these coming in capacities of up to 61.44 TB—an incredible amount of storage that HDDs have yet to catch up to. These drives are targeted at the data-center, where they not just replace HDDs due to their sheer density, but also provide the advantage of responsive flash storage. The drives aren't gunning to top SSD performance charts, the design goal is simply capacity and reliability. The D5-P5336 series feature enterprise-grade QLC NAND flash memory that's been extensively tested for reliability and write endurance.

The Solidigm D5-P5336 series comes in three data-center relevant form-factors—15 mm-thick U.2, 7.5 mm-thick E3.S, and the E1.L (ruler) form-factor. Capacities start at 7.68 TB for the U.2 and E3.S models, and 15.36 TB for the E1.L. The maximum capacity on offer is 61.44 TB for the U.2 and E1.L form-factors, and 30.72 TB for the E3.S. Among the capacity variants are 15.36 TB, 30.72 TB, and 61.44 TB. The drives use a proprietary controller that takes advantage of the PCI-Express 4.0 x4 host interface, and NVMe 1.4c protocol. The star attraction, however, is the 192-layer 3D QLC NAND flash memory made in-house by Solidigm.

Solidigm, a leading global provider of innovative NAND flash memory solutions, has announced the launch of Solidigm Synergy 2.0 software. The Solidigm Synergy software suite improves overall system performance and delivers a better user experience than hardware alone can provide. This free download includes two elements, both optional, but highly recommended: the Solidigm Synergy Driver, which automatically improves the performance of Solidigm SSDs, and the Solidigm Synergy Toolkit, which offers useful SSD health reporting and tools for SSDs from any manufacturer.

Solidigm is the only company today that is investing in a solution with software built on top of the SSD that understands system behavior and adapts based on the user's needs. The latest Solidigm Synergy software improves the PC user experience for all SSD users. It increases performance where it matters most on Solidigm SSDs, and offers a host of useful drive management features for all SSDs, regardless of manufacturer. Solidigm is combining breakthrough SSD products with revolutionary software solutions and plans to introduce further innovations to deliver additional improvements to end-users.

TrendForce's latest investigations reveal that the global NAND Flash market has been facing a demand headwind since 2H22. In response, the supply chain has been scrambling to clear out inventory, driving down NAND Flash contract prices by 20-25%. Enterprise SSD took the brunt of the fall with prices plummeting 23-28%. Despite manufacturers lowering prices in an attempt to drive up demand, clients are hesitant to purchase more components for fear of overstock. As a result, NAND Flash bit shipments rose by a mere 5.3% as ASP fell 22.8%. Global NAND Flash revenue was reported to be US$10.29 billion in 4Q22—down 25% QoQ.

TrendForce reports that Kioxia and Micron saw both a reduction in production and price in 4Q22. Kioxia's revenue plunged 30.5% due to weak demand from PC and smartphone clients and data centers readjusting their inventory. Micron generated a quarterly revenue of US$1.1 billion—a staggering 34.7% QoQ drop—that has led them to drastically decrease their capacity utilization rate for fabs. Luckily, Micron was able to ship their 232-layer client SSDs in 4Q22 as scheduled, and with the 176-layer QLC enterprise SSD hot on its heels, Micron's bit shipments are predicted to steadily improve in 2023 with their revenue climbing gradually quarter by quarter.

TrendForce reports that the recent easing of tight supply for components has led to rising shipments for enterprise servers. Furthermore, ODMs for the most part have been able to sustain the momentum of data center build-out with the demand from ByteDance and the tenders issued by Chinese telecom companies. Nevertheless, the performance of the enterprise SSD market on the whole has been impacted by falling NAND Flash prices. For 3Q22, the NAND Flash industry's enterprise SSD revenue dropped by 28.7% QoQ to US$5.22 billion. Furthermore, all enterprise SSD suppliers recorded a negative performance for the period as well.

Regarding individual enterprise SSD suppliers' revenue figures for 3Q22, Samsung posted around US$2.12 billion. Its market share also shrank to 40.6% from 44.5% in 2Q22. Samsung's performance was mainly dragged down by the decline in its NAND Flash ASP. In the aspect of product development, SSDs featuring 128L NAND Flash and PCIe 4.0 will remain Samsung's main offerings for enterprise storage during 2023.

Market intelligence firm TrendForce reports that the whole NAND Flash market was severely weakened by plummeting demand in 3Q22. Because shipments of end products including consumer electronics and servers had been below expectations, the overall NAND ASP fell by 18.3% QoQ. Furthermore, the general economic outlook remained pessimistic, so enterprises across many sectors started to scale back their capital expenditure plans and halted the momentum of their procurement activities. Due to this development, the problem of excess inventory eventually spread to NAND Flash suppliers. The pressure on suppliers to make sales was ratcheted up dramatically. According to TrendForce's investigation, NAND Flash bit shipments fell by 6.7% QoQ for 3Q22, and the overall NAND Flash ASP also kept sliding. On account of the unfavorable market situation, the NAND Flash industry recorded a total revenue of around US$13.71 billion for 3Q22. The QoQ revenue decline reached as much as 24.3%.

The ranking of NAND Flash suppliers by revenue saw two notable changes for 3Q22. First, SK Group moved down to third place as it suffered the largest revenue drop among suppliers. Its revenue slipped by 29.8% QoQ to US$2.54 billion mainly due to the significant deterioration of the demand for PCs and smartphones. Its subsidiary Solidigm was also affected by the slowdown in server procurements. Previously, servers had a fairly stable demand situation compared with other kinds of end products. However, server demand eventually buckled in 3Q22 as result of enterprises cutting capital expenditure and undergoing a period of inventory correction. Compared with 2Q22, SK Group (that encompasses SK hynix and Solidigm) posted a drop of 11.1% in bit shipments and an even steeper decline of more than 20% in ASP.

Solidigm—the company that Intel sold its SSD business to—held a tech day last week where the company shared some details about its future roadmaps. The company appears to be focusing on 3D QLC NAND and its 192-layer product promises both larger drives, but also enhanced endurance for QLC NAND. For example, Solidigm's 30.72 TB SSD is promising a PBW of around 32 PB (Petabyte) endurance. This is using what the company calls QLC Essential Endurance NAND.

However, its QLC Value Endurance NAND is what will enable the 61.44 TB drive, which is said to offer around 65 PB write endurance, but it should be noted that this is at 16 KB aligned data or during other types of light data writes. Neither type of NAND is destined for consumer applications as of now, as Solidigm is only targeting E1, E3 and U.2 form factors. Regardless, this appears to be a huge step forward for 3D QLC NAND and Solidigm is hoping that its upcoming drives will be able to replace mechanical drives in the enterprise market space. On top of this, Solidigm also claims to offer better throughput and latency compared to its competitors, but we're still looking at SATA type level SSD performance for the IOPS. The first drives with the new 192-layer 3D QLC NAND are expected to be available sometime early next year.

Solidigm has introduced the P44 Pro solid-state storage drive (SSD), a high-performance client SSD for today's most demanding workloads. With blazing-fast speed and excellent power efficiency, the P44 Pro is the world's premier SSD for enthusiasts. The P44 Pro delivers spectacular PCIe Generation 4.0 performance, with up to 7,000 MB/s sequential read speeds. It provides a superb combination of speed and efficiency in Solidigm testing, meeting or exceeding published performance specifications while drawing just 5.3 W. The P44 Pro is available in 512 GB, 1 TB, and 2 TB capacities.

"Our flagship client SSD, the P44 Pro, is built with our cutting-edge NAND technology. Combined with our powerful software, it delivers the high performance users require in demanding applications. The P44 Pro is the most powerful client SSD Solidigm has launched to date and the premier enthusiast SSD on the market," said Sanjay Talreja, General Manager, Client Storage Group. "This drive delivers quick launch and load, and the fast save desired by gaming enthusiasts and content creators. With excellent power efficiency, the P44 Pro minimizes throttling that can come from excessive power and heat - resulting in consistent peak performance."[Editor's note: Our in-depth review of the Solidigm Introduces the P44 Pro is now live]

According to TrendForce research, material supply improvement and spiking demand for enterprise SSDs from North American hyperscale data center and enterprise clients in 2Q22 coupled with the Kioxia contamination incident in 1Q22 prompted customers to ramp up procurement to avoid future supply shortages. Manufacturers also give priority to meeting the needs of server customers due to the high pricing of enterprise SSD. In the second quarter, overall revenue of the enterprise SSD market increased by 31.3% to US$7.32 billion.

As the market leader, Samsung has grown its enterprise SSD revenue to US$3.26 billion with the recovery of enterprise SSD procurement. Especially in the second quarter, when orders for other consumer products continued to decline, enterprise SSD became the company's outlet for reducing production capacity. At present, Samsung has been continuously investing in the development of next-generation transmission specification products such as the CXL 2.0 product released at the Flash Summit in early August, in order to maintain a leading position in the market.

Solidigm has announced the Solidigm P41 Plus, the company's first branded solid-state storage drive (SSD) since becoming a company in December 2021. The P41 Plus is an innovative PCIe 4.0 product that delivers the industry's best combination of performance and value to PC users for everyday productivity and gaming. Capable of delivering up to 4,125 MB/s sequential read speed, the Solidigm P41 Plus represents a breakthrough in cost efficiency, delivering great PCIe 4.0 performance at a price that won't break the budget for everyday PC users. The Solidigm P41 Plus features 144-layer 3D NAND and is widely available in an M.2 2280 form factor in capacities of 512 GB, 1 TB, and 2 TB. For increased design flexibility, the Solidigm P41 Plus is also available to OEMs in 2230 and 2242 sizes.

In a move that reinforces Solidigm's commitment to being a new paradigm in solid-state storage, the company has invested significantly in storage software to unlock the best possible user experience. The result is Solidigm Synergy software, an optional but highly recommended suite that includes both a storage driver and a Windows application with robust drive health monitoring tools. The Solidigm Storage Driver supports host-managed caching by monitoring usage patterns to identify high-priority data, keeping the most important items in the cache, and enabling faster reads as the drive fills up.

According to TrendForce research, North American data centers saw an improvement in components supply after February, driving a recovery in purchase order volume. As Server brands returned to normal in-office work following the pandemic, the increase in capital expenditures on related information equipment has also boosted order growth. The addition of Kioxia's raw material contamination incident led to an increase in the pricing of certain rush orders, pushing up overall Enterprise SSD revenue in 1Q22 to US$5.58 billion, or 14.1% growth QoQ.

According to TrendForce, Samsung and SK hynix (including Solidigm) were the top two players in 1Q22. At the beginning of the year, demand from hyperscale data centers resulted in high inventory levels due to component mismatches, leading Samsung's order growth missing expectations. However, as repercussions from the WDC and Kioxia contamination incident hit NAND Flash production capacity in 1Q22, server customers quickly turned to Samsung for additional orders, driving the company's 1Q22 revenue to US$2.77 billion, up 14.8% QoQ.

Today Solidigm is expanding its performance-optimized D7 Product Series with new solid-state storage drives (SSDs)—the D7-P5520 and the D7-P5620—for data center and enterprise use. These drives are optimized for real-world compute and storage server workloads and are available in an extended range of form factors and capacities. They offer accelerated performance and reduced total cost of ownership (TCO) by enabling a smaller storage footprint and lower power consumption. The D7-P5520 (designed for read-intensive and light mixed workloads), and the D7-P5620 (designed for mixed workloads), are the first family of products being introduced by Solidigm, which launched as a standalone company in December 2021.

The D7 Series comprises the industry's most advanced PCIe 4.0 SSD family of products given their capacity offerings, breadth of form factors and optimized performance capabilities. These SSDs are optimized for real-world workloads and reflect insights gained from deep technical engagements with leading cloud service providers, OEMs, and storage innovators. Designed and tested with zero tolerance for data errors, consistently durable IOPS and QoS, and with near-zero lifetime performance degradation, they can be deployed with the utmost confidence.

Today SK hynix and Solidigm jointly introduced their first collaborative product, a new enterprise solid-state drive (eSSD), P5530. This limited release product highlights the emerging partnership between SK hynix and Solidigm, which formed three months ago when SK hynix acquired Intel's NAND and SSD business. The P5530 combines SK hynix's 128-layer 4D NAND flash with Solidigm's SSD controller and firmware supporting a PCIe Gen 4 interface. The product is offered in 1 TB, 2 TB, and 4 TB capacity options. SK hynix and Solidigm worked together to optimize performance with specific data center use cases and targeted deployments in mind.

Since the launch of Solidigm, the companies have partnered to forge a forward-moving strategy and co-develop products while reinforcing common values across the companies. Through the ongoing partnership and collaboration with Solidigm, SK hynix expects to enhance its NAND flash business competitiveness to the same extent as its DRAM business.

"With in-time demonstration of the collaborative product based on the combined competence of SK hynix and Solidigm, we aim to not only enhance our NAND flash business competitiveness but also speed up our "Inside America" strategy," said Kevin (Jongwon) Noh, President and Chief Marketing Officer (CMO) at SK hynix. "SK hynix and Solidigm will continue to partner in order to optimize both companies' operations to create greater synergies."

In 4Q21, NAND Flash bit shipments grew by only 3.3% QoQ, a significant decrease from the nearly 10% in 3Q21, according to TrendForce's investigations. ASP fell by nearly 5% and the overall industry posted revenue of US$18.5 billion, a QoQ decrease of 2.1%. This was primarily due to a decline in the purchase demand of various products and a market shift to oversupply causing a drop in contract prices. In 4Q21, with the exception of enterprise SSD, the supply of which was limited by insufficient upstream components, the prices of other NAND Flash products such as eMMC, UFS, and client SSD, all fell.

TrendForce's summary of NAND Flash market sales performance in 2021 is as follows: although there have been signs of weakening since 2H21, thanks to remote services and cloud demand driven by the pandemic, revenue performance still grew significantly compared to 2020. Revenue reached US$68.6 billion, up 21.1% YoY, the second-biggest increase since 2018.

SK hynix today announced that it has completed the first phase of the transaction to acquire Intel's NAND and solid-state drive (SSD) business. Following the recent merger clearance from China's State Administration for Market Regulation on Dec. 22, SK hynix closed the first phase of the transaction by acquiring Intel's SSD business and the Dalian NAND flash manufacturing facility in China. In exchange, SK hynix will pay US $7 billion in consideration.

In the second phase of the transaction, SK hynix will acquire from Intel the remaining assets in relation to its NAND business, including IP related to the manufacture and design of NAND flash wafers, R&D employees for NAND flash wafers, the Dalian facility workforce, and the other associated tangible / intangible assets. Closing of the second phase is expected to occur in or after March 2025 with the remaining payment of US $2 billion, which will complete the entire deal.