TrendForce reports that a reduction in supplier production has led to unmet demand for high-capacity orders since 4Q23. Combined with procurement strategies aimed at building low-cost inventory, this has driven orders and significantly boosted enterprise SSD revenue, which reached US$3.758 billion in 1Q24—a staggering 62.9% QoQ increase.

TrendForce further highlights that demand for high-capacity, driven by AI servers, has surged. North American clients increasingly adopt high-capacity QLC SSDs to replace HDDs, leading to over 20% growth in Q2 enterprise SSD bit procurement. This has also driven up Q2 enterprise SSD contract prices by more than 20%, with revenue expected to grow by another 20%.High-capacity QLC products have demonstrated superior demand momentum compared to other capacities, with Samsung and SK Group (SK hynix & Solidigm) holding a competitive edge. Samsung's order growth has outpaced others thanks to its status as the primary supplier of enterprise SSDs to North American clients and the qualification of its QLC enterprise SSD products by customers, driving Q1 revenue to $1.782 billion—an 85.4% jump. Strong North American demand is projected to boost Q2 revenue by over 30%.

SK Group's subsidiary Solidigm, which has long focused on QLC enterprise SSD products, has experienced a surge in orders, doubling due to increased adoption by AI customers. This led to Q1 enterprise SSD revenue of $1.144 billion, marking a 49.3% QoQ increase. The second quarter is also expected to benefit from high-capacity SSD orders, with projected revenue growth of over 30%. Micron also saw significant gains, with Q1 enterprise SSD revenue reaching $374 million—a 49.4% QoQ jump—driven by rising volume and prices.

Kioxia's Q1 enterprise SSD revenue climbed to $326 million—a 50.1% QoQ increase—bolstered by ongoing orders from North American clients. The second quarter is expected to see an additional 20% revenue growth. Western Digital, with a customer base mainly in North America, saw a modest 18.1% increase in revenue to $133 million because of its more limited product line.

However, Western Digital is also aggressively pursuing shipments of high-capacity storage products, with 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, breaking its tradition of in-house IC development. This strategic move underscores Western Digital's efforts to expand its product range and support steady growth in enterprise SSD revenue.