TrendForce reports a significant increase in enterprise SSD revenue in the first quarter of 2024, driven by high-capacity orders and increased demand for QLC SSDs from North American clients, with Samsung, SK Group, Micron, Kioxia, and Western Digital all experiencing notable growth.
- Significant increase in enterprise SSD revenue
- Surge in demand for high-capacity SSDs
- Positive reception of QLC enterprise SSD products by customers
According to a recent report by TrendForce, the reduction in supplier production has resulted in a significant gap between supply and demand for high-capacity orders since the fourth quarter of 2023. This, combined with procurement strategies focused on building low-cost inventory, has led to a surge in enterprise SSD revenue in the first quarter of 2024, reaching an impressive $3.758 billion—a remarkable 62.9% increase compared to the previous quarter.
TrendForce also highlights that the demand for high-capacity SSDs, driven by AI servers, has experienced a notable surge. North American clients, in particular, are increasingly adopting high-capacity QLC SSDs as a replacement for HDDs, leading to over 20% growth in enterprise SSD bit procurement in the second quarter. As a result, contract prices for enterprise SSDs have increased by more than 20% in the same period, with revenue expected to continue growing by another 20%.
Among the high-capacity QLC SSD providers, Samsung and SK Group (including SK hynix & Solidigm) have emerged as frontrunners. Samsung’s order growth has outpaced its competitors, thanks to its position as the primary supplier of enterprise SSDs to North American clients and the positive reception of its QLC enterprise SSD products by customers. This success has driven Samsung’s first-quarter revenue to $1.782 billion—an impressive 85.4% increase. Strong demand from North America is projected to boost revenue by over 30% in the second quarter.
Solidigm, a subsidiary of SK Group, has also experienced a surge in orders for QLC enterprise SSD products, primarily due to increased adoption by AI customers. This has resulted in a doubling of orders and a 49.3% increase in first-quarter enterprise SSD revenue, amounting to $1.144 billion. The second quarter is expected to see further growth in revenue, with a projected increase of over 30%.
Micron has also seen significant gains in the enterprise SSD market, with first-quarter revenue reaching $374 million—a notable 49.4% increase compared to the previous quarter. This growth can be attributed to both rising volume and prices.
Kioxia, another key player in the industry, experienced a 50.1% increase in first-quarter enterprise SSD revenue, reaching $326 million. Ongoing orders from North American clients have been instrumental in driving this growth, and an additional 20% increase in revenue is expected in the second quarter.
Western Digital, on the other hand, saw a more modest 18.1% increase in revenue to $133 million in the first quarter. This can be attributed to its more limited product line and a customer base primarily focused in North America. However, Western Digital is actively pursuing shipments of high-capacity storage products and has plans to mass-produce 162-layer QLC SSDs. To accelerate the production of PCIe 5.0 SSDs, the company is collaborating with third-party controller manufacturers, deviating from its tradition of in-house IC development. This strategic move highlights Western Digital’s commitment to expanding its product range and supporting steady growth in enterprise SSD revenue.
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Background Information
About Kioxia:
Kioxia is a global leader in flash memory and solid-state drive (SSD) technology, originating from Toshiba Memory Corporation, which rebranded as Kioxia in 2019. Headquartered in Tokyo, Japan, Kioxia develops high-quality memory solutions, serving various markets including consumer electronics, data centers, and industrial applications. The company is known for pioneering NAND flash memory technology, focusing on innovation, data storage solutions, and sustainability.
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About Samsung:
Samsung, a South Korean multinational conglomerate, has established itself as a global leader in various industries, including electronics, technology, and more. Founded in 1938, Samsung's influence spans from smartphones and consumer electronics to semiconductors and home appliances. With a commitment to innovation, Samsung has contributed products like the Galaxy series of smartphones, QLED TVs, and SSDs that have revolutionized the way we live and work. Latest Articles about Samsung
About SK hynix:
SK Hynix is a important South Korean semiconductor company known for its innovative contributions to the global technology landscape. Specializing in the production of memory solutions, SK Hynix has played a vital role in shaping the semiconductor industry. With a commitment to research and development, they have continuously pushed the boundaries of memory technology, resulting in products that power various devices and applications. Latest Articles about SK hynix
About Western Digital:
Western Digital, established in 1970, is a important data storage solutions provider known for its wide range of hard drives and solid-state drives. Catering to various applications, from personal computers to enterprise storage systems, Western Digital emphasizes data management and security. With a reputation for reliability and innovative solutions, the company has been pivotal in shaping the storage industry. Their products are trusted by individuals, businesses, and data centers worldwide Latest Articles about Western Digital
Technology Explained
PCIe: PCIe (Peripheral Component Interconnect Express) is a high-speed serial computer expansion bus standard for connecting components such as graphics cards, sound cards, and network cards to a motherboard. It is the most widely used interface in the computer industry today, and is used in both desktop and laptop computers. PCIe is capable of providing up to 16 times the bandwidth of the older PCI standard, allowing for faster data transfer speeds and improved performance. It is also used in a variety of other applications, such as storage, networking, and communications. PCIe is an essential component of modern computing, and its applications are only expected to grow in the future.
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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
Latest Articles about SSD
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