NAND Flash Suppliers Boost Process Upgrades as AI SSD Procurement Capacity Surges

The demand for enterprise SSDs is rapidly increasing due to the growing use of AI in various industries, with suppliers working to meet the demand by producing high-capacity SSDs to cater to the needs of AI training and inference servers.

SSDs are crucial for storing model parameters and creating checkpoints during AI model training.
They are also essential for AI inference servers, storing reference documents and knowledge bases for generating informative responses.
The demand for AI SSDs is growing at an unprecedented rate, with an estimated 60% annual growth rate in the next few years.

In the ever-evolving world of technology, AI (artificial intelligence) has become a force to be reckoned with. From voice assistants to self-driving cars, AI is transforming industries and revolutionizing the way we live and work. And as the demand for AI continues to skyrocket, so does the need for enterprise SSDs (solid-state drives).

According to a recent report from TrendForce, AI server customers have been placing significantly larger orders for enterprise SSDs in the past two quarters. This surge in demand has led to a rise in contract prices for SSDs, with prices increasing by over 80% from the fourth quarter of 2023 to the third quarter of 2024. It’s clear that SSDs play a crucial role in AI development.

So, why are SSDs so important in the world of AI? Well, when it comes to AI model training, SSDs are responsible for storing model parameters. These parameters include evolving weights and deviations, which are essential for training AI models. Additionally, SSDs are used to create checkpoints, allowing AI models to save their progress and recover from specific points in case of interruptions. With the demanding requirements of the training process, customers often opt for high-capacity SSDs, such as 4TB or 8TB TLC SSDs.

But it doesn’t stop there. SSDs are also vital in AI inference servers, which are responsible for adjusting and optimizing AI models during the inference process. Inference is all about generating informative responses, and SSDs play a crucial role in this. They store reference documents and knowledge bases that AI models use to generate these responses. And as more information is displayed as videos or images, the need for high-capacity SSDs, like 16TB or larger TLC/QLC SSDs, becomes even more apparent.

The demand for AI SSDs is growing at an unprecedented rate. In fact, TrendForce estimates that this year’s AI-related SSD procurement capacity will exceed a staggering 45EB (exabytes). And the growth doesn’t stop there. Over the next few years, AI servers are expected to drive an average annual growth rate of over 60% in SSD demand. This means that AI SSD demand could rise from 5% of total NAND Flash consumption in 2024 to 9% in 2025.

To meet this growing demand, suppliers are already stepping up their game. They are accelerating process upgrades and planning for the mass production of high-capacity SSDs, with the aim of eventually producing 120TB enterprise SSD products. These advancements will not only cater to the needs of AI inference servers but also ensure that the industry stays ahead of the curve.

The future of AI is bright, and with it comes the need for more powerful and efficient storage solutions. SSDs are at the forefront of this revolution, enabling AI models to train faster, make more accurate predictions, and generate more informative responses. As technology continues to advance, it’s clear that SSDs will play an increasingly vital role in shaping the future of AI.

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Technology Explained

NAND: NAND technology is a type of non-volatile memory that is used in many computer applications. It is a type of flash memory that is used to store data in a non-volatile manner, meaning that the data is not lost when the power is turned off. NAND technology is used in many computer applications, such as solid-state drives, USB flash drives, digital cameras, and memory cards. It is also used in many embedded systems, such as cell phones, tablets, and other consumer electronics. NAND technology is a reliable and cost-effective way to store data, making it a popular choice for many computer applications.

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SSD: A Solid State Drive (SSD) is a modern data storage device that employs flash memory technology to store data electronically. Unlike traditional hard disk drives (HDDs), SSDs have no moving parts, resulting in significantly faster read and write speeds. This leads to quicker boot times, faster application loading, and smoother overall system performance. SSDs are known for their durability, shock resistance, and energy efficiency, making them ideal for laptops, ultrabooks, and other portable devices. They come in various form factors, including 2.5-inch, M.2, and PCIe cards, and are favored for their reliability, quiet operation, and reduced heat generation