The rapid growth of AI servers has caused a dramatic 80% surge in enterprise solid-state drive (SSD) prices. In response, SK Hynix and its subsidiary Solidigm are increasing NAND flash production to meet this soaring demand. The AI revolution, initially focused on high-bandwidth memory, is now driving a need for high-capacity SSDs to store the increasing volume of data generated by AI servers.
Industry insiders report that SK Hynix is increasing wafer input at its M15 production line, aiming for a 10% boost in monthly output by early next year. Solidigm, having recently turned a profit, also plans to increase production by around 5%.
SSDs, with their superior speed and efficiency compared to traditional hard disk drives, are crucial for meeting the storage demands of AI servers. Market research firm TrendForce forecasts an annual growth rate of over 60% in SSD demand driven by AI servers in the coming years.
Quad-level cell (QLC) technology, which stores 4 bits of data per cell, is particularly suited for high-capacity enterprise SSDs. Solidigm currently leads the market with its 60TB QLC enterprise SSDs, and demand has significantly outstripped supply.
SK Hynix plans to consolidate its market position by mass-producing new 128TB QLC SSDs early next year. Kim Seok, SK Hynix’s NAND marketing director, stated the company aims to solidify its position as a top player in the rapidly growing enterprise SSD market.
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