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Total NAND Flash Revenue Drops 2.1% QoQ in 4Q21 Due to Slowing Demand and Falling Prices, Says TrendForce

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.

Schenker (XMG) Predicts New Laptop Delays Due to Component Shortages

China is reacting to new outbreaks of the Omicron variant of the Coronavirus with partial lockdowns. This could further delay the availability of laptops with 12th Gen Intel Core processors and NVIDIA's Ti graphics cards, which debuted at the beginning of the year. The first factories have already been closed in Suzhou in the east of the country. Supply chain and logistics bottlenecks, a shortage of certain chip types and price increases are already on the horizon.

NAND Flash Pricing Set to Spike 5-10% in Q2 Due to Material Contamination at WDC and Kioxia, Says TrendForce

WDC recently stated that certain materials were contaminated in late January at NAND Flash production lines in Yokkaichi and Kitakami, Japan which are joint ventures with Kioxia, according to TrendForce's investigations. Before this incident, TrendForce had forecast that the NAND Flash market will see a slight oversupply the entire year and average price from Q1 to Q2 will face downward pressure. However, the impact of WDC's material contamination issue is significant and Samsung's experience during the previous lockdown of Xi'an due to the pandemic has also retarded the magnitude of the NAND Flash price slump. Therefore, the Q1 price drop will diminish to 5~10%. In addition, according to TrendForce, the combined WDC/Kioxia NAND Flash market share in the 3Q21 was as high as 32.5%. The consequences of this latest incident may push the price of NAND Flash in Q2 to spike 5~10%.

The contaminated products in this incident are concentrated in 3D NAND (BICS) with an initial estimate of 6.5exabytes (approximately 6,500M GB) affected. According to TrendForce, damaged bits account for 13% of the group's output in 1Q22 and approximately 3% of the total output for the year. The normal production schedule for the entire line has yet to be confirmed. It is worth noting that the damages announced by WDC likely do not account for total losses stemming for this event and the number of damaged Kioxia parts has not been aggregated, so the total number of affected bits may increase further.

KIOXIA Celebrates 35th Anniversary of Invention of NAND Flash Memory

What do the MP3 players of the 1990s and today's smartphones have in common? Neither would exist were it not for NAND flash memory, an innovation whose influence has reverberated throughout the decades. KIOXIA America, Inc. today announced that it has reached a new milestone - 2022 marks the 35th anniversary of the company's invention of NAND flash memory.

Back in 1987, it would have been hard to imagine all of the ways that this then brand-new technology would impact the world. NAND flash memory has ushered in entire new technological eras, and obsoleted technologies and products that had been in use for years - changing our lives in countless ways. Since starting at zero 35 years ago, the NAND flash market has grown to $70B. In terms of die density, flash memory has grown from 4 Mb to 1.33 Tb - a 333,000x increase. To put this exponential growth in perspective, in the 1990s, the largest available density flash memory could hold 1/8 of a photo. Flash forward to today, where the largest available die density is a whopping 1.33 Tb - and capable of storing 39,000 photos.

Kioxia Advances Development of UFS Ver. 3.1 Embedded Flash Memory Devices With Quad-level-cell (QLC)

Kioxia Corporation, a world leader in memory solutions, today announced the launch of Universal Flash Storage (UFS) Ver. 3.1 [1] embedded flash memory devices utilizing the company's innovative 4-bit per cell quad-level-cell (QLC) technology. For applications needing high density, such as cutting-edge smartphones, Kioxia's QLC technology enables the capability to achieve the highest densities available in a single package.

Kioxia's UFS proof of concept (PoC) device is a 512 gigabyte prototype that utilizes the company's 1 terabit (128 gigabyte) BiCS FLASH 3D flash memory with QLC technology, and is now sampling to OEM customers. The PoC device is designed to meet the increasing performance and density requirements of mobile applications driven by higher resolution images, 5G networks, 4K plus video and the like.

TechPowerUp and KIOXIA Exceria SSD Giveaway: The Winners

TechPowerUp partnered with NAND flash pioneer KIOXIA to give you a chance to bring home one of three KIOXIA Exceria series SSDs. Based on the company's BiCS 3D NAND flash technology, the Exceria series spans various client SSD form-factors, including M.2 NVMe and 2.5-inch SATA. The brand also extends to the company's various consumer flash products, including portable SSDs, USB flash drives, and memory cards. Up for grabs in the TechPowerUp Giveaway were a 2 TB Exceria Plus G2 NVMe SSD, a 1 TB Exceria NVMe SSD, and a 960 GB Exceria SATA 2.5-inch SSD. The results are in, and we have the winners!
  • Martin from Malta, wins the 2 TB Exceria Plus G2 NVMe SSD
  • Pari from New Zealand, wins the 1 TB Exceria NVMe SSD
  • Paul from the United Kingdom, wins the 960 GB Exceria SATA 2.5-inch SSD
A huge Congratulations to you three! TechPowerUp and KIOXIA will return with more such interesting giveaways.

TechPowerUp KIOXIA Exceria SSD Worldwide Giveaway Ending Soon, Hurry!

TechPowerUp and KIOXIA partner to bring our readers from across the world a golden opportunity to win one of three KIOXIA Exceria SSDs across a selection of form-factors. As the technology-pioneer in NAND flash, KIOXIA brings experience and quality to the table with their Exceria line of client-segment SSDs and flash-storage products. Up for grabs are a 2 TB Exceria Plus G2 NVMe SSD, a 1 TB Exceria NVMe SSD, and a 960 GB Exceria SATA 2.5-inch SSD. Entries close on January 9th, so hurry, all you need to do is fill in a short form to help us get back to you if you've won!

For more information, and to participate, visit this page.

TechPowerUp and KIOXIA Present Exceria SSD Giveaway

TechPowerUp and KIOXIA come together to bring you a change to win one of three KIOXIA Exceria client SSDs. The Exceria range of SSDs span 2.5-inch SATA and M.2 NVMe form-factors, and combine KIOXIA's in-house BiCS flash memory, and the legacy of being the inventors of flash memory. Up for grabs are a KIOXIA Exceria Plus G2 2 TB M.2 NVMe SSD, a KIOXIA Exceria 1 TB M.2 NVMe SSD, and a KIOXIA Exceria SATA 960 GB SSD. The Giveaway is open worldwide (wherever legal), entries close on January 9, 2022. To participate, simply fill up a brief form to help us get back to you if you've won. All the best!

For more information and to participate, visit this page.

Apacer Announces Industrial Memory Solutions Based on 112-layer BiCS5 Flash

According to research from Mordor Intelligence, the facial recognition market was valued at USD 3.72 billion in 2020, and is projected to be valued at USD 11.62 billion by 2026, registering a CAGR of approximately 21.71% over the forecast period. Facial recognition technology is finally coming into its own. It has gone beyond police officers looking for a suspect on a surveillance camera. Now, smart AI-driven facial recognition technology is common in smart retail, finance, transportation and even healthcare applications. But as adoption spreads, facial recognition devices are being required to operate in ever-more-challenging locations and environments. Keeping all these developments in mind, Apacer developed and has now released the CH120 series of industrial cards powered by the latest 112-layer BiCS5 3D TLC NAND technology, optimized for both AI facial recognition and smart IoT applications.

BiCS5 promises concrete, measurable advantages for SSDs, as it greatly improves capacity while keeping transmission latency ultra-low. In fact, Apacer's A2-grade CH120 series offers 4,000/2,000 IOPS for 4K image read/write performance. And compromised environments won't slow these cards down either - their wide temperature range means they operate smoothly in temperatures as low as -40 and as high as 85 degrees Celsius. The CH120 series of industrial cards are also equipped with value-adding over-provisioning and SLC-liteX technology. The former drastically reduces write amplification, extending an SSD's operational lifespan, while the latter allows an SSD to increase its endurance to up to 30,000 P/E cycles. That's 10 times higher than standard 3D TLC SSDs.

PCIe 4.0 NVMe SSDs from KIOXIA Achieve VMware vSAN 7.0 Certification

KIOXIA America, Inc. today announced that its CM6 and CD6 Series of PCIe 4.0 NVMe SSDs have earned VMware vSAN 7.0 certification, enabling them to be shared across connected hosts in a VMware vSphere cluster. Users can pool KIOXIA SSDs together in a single, distributed, shared data-store and define the storage capabilities required (such as performance, capacity and availability) for each connected virtual machine within the VMware vSAN cluster. These capabilities not only further hyper-converged infrastructure (HCI) options in virtual environments, but also ensure that storage policies are administered and maintained within the CM6 and CD6 Series with vSAN compatibility.

This certification allows VMware vSAN support for both hybrid and all-flash configurations using a two-tier storage architecture, capacity tier and cache. All write operations are sent to the cache tier and are subsequently de-staged to the capacity tier over time. When a CM6 or CD6 Series SSD is deployed within a hybrid configuration, its cache tier is used as both a read and write cache, staging hot data to improve system performance. In an all-flash configuration, 100 percent of the cache tier is used for the write buffer. Given the benefits of tiered storage, CM6 and CD6 SSDs are capable of meeting the demanding requirements of both enterprise and data center customers.

NAND Flash Revenue Rises by 15% QoQ for 3Q21 Thanks to Demand from Smartphone and Data Center Markets, Says TrendForce

The growth of the NAND Flash market in 3Q21 was primarily driven by strong demand from the data center and smartphone industries, according to TrendForce's latest investigations. More specifically, NAND Flash suppliers' hyperscaler and enterprise clients kept up their procurement activities that began in 2Q21 in order to deploy products based on new processor platforms. Major smartphone brands, on the other hand, likewise expanded their NAND Flash procurement activities during the quarter as they prepared to release their new flagship models. As such, clients in both server and smartphone industries made significant contributions to the revenue growth of the NAND Flash industry for 3Q21. At the same time, however, suppliers also warned that orders from PC OEMs began showing signs of decline. On the whole, the industry's quarterly total NAND Flash bit shipment increased by nearly 11% QoQ for 3Q21, and the overall NAND Flash ASP rose by nearly 4% QoQ for the same quarter. Thanks to rising prices and expanding shipments, the quarterly total NAND Flash revenue increased by 15% QoQ to a new record high of US$18.8 billion in 3Q21.

Kioxia Launches Exceria Plus External USB-C SSD

Kioxia is continuing to expand its end user product range and its latest addition is an external USB-C SSD that goes by the name of Exceria Plus. It'll be available in 500 GB, 1 TB and 2 TB sizes, which seems like a decent range of size options. The USB-C interface sadly tops out at USB 3.2 Gen 2, or 10 Gbps speeds, which results in the corresponding maximum read speed of 1,050 MB/s and a maximum write speed of 1,000 MB/s.

The drive is MIL-STD-810H procedure IV impact tested, which means it can withstand a drop of about 1.2 metres onto reinforced concrete without taking any damage. The drive measures 105 x 45 x 14.7 mm (W x D x H) and weighs in at 76 grams, not including cables. Pricing in Japan starts at about US$78 and goes up to US$265.

KIOXIA Unveils the EXCERIA PLUS Portable SSD Series

KIOXIA, a worldwide leader in memory solutions, today announced the launch of the EXCERIA PLUS Portable SSD Series, scheduled to be released in November. The portable SSD series fits up to 2 TB of data in a new compact palm-size and rounded design. Compatible out-of-the-box with multiple host devices including PCs, smartphones, tablets and game consoles, making these portable SSDs suitable for on-the-go users and content creators seeking high-speed transfer of large data files.

The EXCERIA PLUS Portable SSD Series utilizes KIOXIA's BiCS FLASH 3D flash memory and offers a line-up of capacities in 500 GB, 1 TB and 2 TB. With a maximum sequential read speed of 1,050 MB/s, the new series features a USB Type-C connector with a USB 3.2 Gen2 interface enabling fast transferring of 4K videos and high-resolution photos. Each EXCERIA PLUS Portable SSD also includes cables of both Type-C to A and Type-C to C to ensure the drive works on both current and legacy systems.

AMD Expected to See 65 Percent Growth Rate in Sales for 2021, Intel Down One Percent

According to an industry report by IC Insights, AMD will see a yearly growth rate of no less than 65 percent this year, compared to 2020, whereas Intel is expected to have a slightly negative growth rate of one percent. The report includes the top 25 semiconductor sales leaders, ranked by growth rate, although it should be pointed out that some of them are foundries and not just semiconductor companies.

AMD is closely followed by MediaTek, which is expected to reach a 60 percent growth rate this year, followed by Nvidia at 54 percent and Qualcomm and 51 percent growth. The only surprise in the top five is PRC based SMIC, which saw a 39 percent growth this year, despite, or maybe because of the US sanctions against various Chinese IC makers.

KIOXIA Announces BG5 PCIe Gen4 NVMe SSD

KIOXIA America, Inc. today announced that it has bolstered its lineup of PCIe 4.0 solid state drives (SSDs) with the addition of the KIOXIA BG5 Series. Designed to bring a suitable balance of performance, cost and power to everyday gamers and PC users, the KIOXIA BG5 Series is built with a PCIe 64 GT/s interface (Gen4 x4 lanes) and accelerated by the company's fifth-generation BiCS FLASH 3D flash memory technology.

As a virtual multi-LUN (VML)-enabled client SSD, the KIOXIA BG5 Series unlocks back-end flash performance while maintaining affordability, making it an especially attractive option for a wide range of commercial and consumer notebooks and desktops. KIOXIA BG5 SSDs also support the latest Host Memory Buffer (HMB) technology to realize a finely optimized DRAM-less SSD. The KIOXIA BG5 ships in a compact M.2 2230 single-sided, thermally optimized form factor enabling mobility and work-from-home lifestyles. M.2 2280 single-sided form factor versions are also available.

KIOXIA Announces Production Availability of Native Ethernet Flash-Based SSDs

KIOXIA America, Inc. today announced the production availability of its EM6 Series Enterprise NVMe-oF solid state drives (SSDs) for Ethernet Bunch of Flash (EBOF) systems. Using the Marvell 88SN2400 NVMe-oF SSD converter controller that converts an NVMe SSD into a dual-ported 25Gb NVMe-oF SSD, KIOXIA EM6 Series drives expose the entire SSD bandwidth to the network.

Due to their ability to scale performance of NVMe SSDs, native NVMe-oF architectures are well-suited for applications such as artificial intelligence (AI)/machine learning (ML), high performance computing (HPC) and storage expansion. In the case of HPC, leveraging the Lustre file system, which is used to provide high bandwidth and parallel access to compute clusters, is beneficial to NVMe-oF based storage, such as EBOF systems with EM6 SSDs, that enable high availability (HA) configurations. An HPC HA configuration example consists of multiple and redundant network connections between a compute host and an EBOF with 88SN2400-connected NVMe SSDs, to deliver scalable throughput based on the number of SSDs.

KIOXIA XD6 EDSFF E1.S Form-Factor Enterprise SSDs Now Available

Delivering on the promise of SSDs that address future enterprise infrastructure requirements, KIOXIA America, Inc. today announced production-ready availability of its 9.5 mm XD6 Series Enterprise and Datacenter Standard Form Factor (EDSFF) E1.S data center class SSDs. Introduced in late 2020, KIOXIA XD6 drives were the first EDSFF E1.S SSDs to address the specific requirements of hyperscale applications, including the performance, power and thermal requirements of the Open Compute Platform (OCP) NVMe Cloud SSD Specification. XD6 series also supports popular E1.S 15 mm and 25 mm form factor options, providing the flexibility to select the right balance of cooling through different E1.S heatsink options.

Representing the latest innovation in flash storage for servers in cloud and hyperscale data centers, KIOXIA EDSFF E1.S SSDs are designed to optimize system density, efficiency and management. As defined by the EDSFF consortium and leveraging the OCP NVMe Cloud SSD Specification, the small form factor E1.S replaces the M.2 form factor and delivers greater density, performance, reliability, and thermal management. E1.S is also designed to be hot pluggable for increased serviceability, which is another benefit over M.2.

Global Ranking of Top 10 SSD Module Makers for 2020 Shows 15% YoY Drop in Annual Shipment, Says TrendForce

The emergence of the COVID-19 pandemic led to severe delays in manufacturing and logistics. In particular, governments worldwide began implementing border restrictions in 2Q20 to combat the ongoing health crisis, leading to a sudden decline in order volumes for channel-market SSDs, according to TrendForce's latest investigations. Annual shipment of SSDs to the channel (retail) market reached 111.5 million units in 2020, a 15% YoY decrease. In terms of market share by shipment, Kingston, ADATA, and Kimtigo once again occupied the top three spots, respectively.

Looking at the channel market for SSDs as a whole, NAND Flash suppliers (among which Samsung possessed the largest market share) accounted for around 35% of the total shipments in 2020, while SSD module makers accounted for the other 65%. The top 10 module makers accounted for 71% of channel-market SSD shipments from all SSD module makers. Taken together, these figures show that the market remained relatively oligopolistic in 2020. However, it should be noted that TrendForce's ranking of SSD module makers for 2020 takes account of only products bound for the channel market and under brands owned by the module makers themselves; NAND Flash suppliers were therefore excluded from the top 10 ranking.

GIGABYTE Announces a Unique Server Solution to RAID Drawbacks with GRAID SupremeRAID

GIGABYTE Technology, an industry leader in high-performance servers and workstations, today announced a new server, GIGABYTE R282-Z9G, that gets around hardware and software RAID limitations that bottleneck RAID when used with NVMe SSDs. Continuing in the success of the R282 series, the new SKU was designed to house an all-in-one server solution that specifically targets high performance NVMe (Gen4) SSDs for RAID by incorporating the GRAID SupremeRAID solution into the R282-Z9G. This is the first GIGABYTE server to incorporate a GRAID Technology solution and has proven to be highly successful with Kioxia CM6-R SSDs.

More and more companies are using flash storage and doing so on a larger scale; however, there may be pitfalls when using RAID, such as limitations in computing performance or consuming a large amount of CPU resources. To solve these problems and to do so with a large amount of drives, the GRAID SupremeRAID works by installing a virtual NVMe controller on the OS while integrating a PCIe device for high performance. With this GIGABYTE solution over 100 GB/s of throughput is possible for workloads in HPC, 4K/8K video editing, high-frequency trading, online transaction processing, or database processing.

KIOXIA CD7 Series PCIe 5.0 SSDs Belt Out 14 GBps Sequential Transfers

Presenting at the China Flash-Market Summit, KIOXIA unveiled its plans to leverage PCI-Express 5.0 to double SSD performance over the current generation. In typical 4-lane U.2 and M.2 connections, PCI-Express Gen 5 enables an interface bandwidth of 16 GB/s per direction (comparable to PCI-Express 3.0 x16). This means that accounting for interface overheads, typical PCIe Gen 5 SSDs will dance around the 11-15 GB/s (sequential) range. KIOXIA unveiled the CD7, a prototype enterprise SSD in the 2.5-inch EDSFF E3S form-factor with U.2 PCI-Express 5.0 x4 interface. This drive, the company claims, offers up to 14 GB/s sequential transfers, more than double the performance of the current CM6 series drives that leverage PCI-Express Gen 4.

KIOXIA said that its first PCI-Express Gen 5 SSDs will begin shipping in Q4-2021, although it didn't mention if this was mass-market, or to select customers. The first enterprise platforms to leverage Gen 5 won't arrive before mid-2022, with Intel's Xeon "Sapphire Rapids" processors that feature PCI-Express Gen 5 support. KIOXIA sounded optimistic about the future growth in performance of SSDs. "Today, Moore's Law is technically dead in both the CPU and DRAM, but it still works at the PCIe clock rate," the company said, adding ""2015 [was] be the third generation of PCIe, 2019 is the fourth generation, and 2022 will be the fifth generation. Even if people spend a lot of money, they can't double CPU nodes to improve system performance, but buying Gen 5 SSD instead of Gen 4 SSD can greatly improve system performance."

KIOXIA Introduces PCIe 4.0 Storage Class Memory SSDs

Low latency, high endurance Storage Class Memory (SCM) is coming to KIOXIA SSDs. KIOXIA America, Inc. is now sampling its FL6 Series enterprise NVMe SCM SSDs. Featuring the KIOXIA SCM solution, XL-FLASH, the dual-port and PCIe 4.0-compliant KIOXIA FL6 Series SSDs bridge the gap between DRAM and TLC-based drives, making them well-suited to latency-sensitive use cases such as caching layer, tiering and write logging.

Based on KIOXIA's innovative BiCS FLASH 3D flash memory technology with 1-bit-per-cell SLC, XL-FLASH SCM brings low latency and high performance to data center and enterprise storage. While volatile memory solutions such as DRAM provide the access speed needed by demanding applications, it comes at a high cost. SCM addresses this by providing high density, lower cost non-volatile flash memory.

NAND Flash Revenue for 2Q21 Rises by 10.8% QoQ Due to Strong Notebook Demand and Procurements for Data Centers, Says TrendForce

NAND Flash suppliers' Clients in the data center segment were gradually stepping up enterprise SSD procurement after finishing inventory adjustments, according to TrendForce's latest investigations. Moreover, the adoption rate of 4/8 TB products in the enterprise SSD market increased substantially on account of the releases and adoption of the new server processor platforms from Intel and AMD. Although the recent wave of COVID-19 outbreaks that struck Southeast Asia weakened smartphone sales in 2Q21, the quarterly total NAND Flash bit shipments rose by nearly 9% QoQ, as PC OEMs still had plenty of component orders in 2Q21 due to the fairly robust notebook demand during the period. On the other hand, the shortage of controller ICs became more severe during the period, and the winter storm that battered Texas this February affected the operation of Samsung's foundry fab Line S2 in Austin. As demand for NAND Flash products rose, the overall ASP also rose by nearly 7% QoQ, and the quarterly total NAND Flash revenue rose by 10.8% QoQ to US$16.4 billion in 2Q21.

KIOXIA Announces Exceria PRO and Exceria G2 Series Client M.2 NVMe SSDs

Kioxia Corporation, a world leader in memory solutions, today announced two new solid state drive (SSD) series scheduled to be released in the fourth quarter of 2021. The EXCERIA PRO and EXCERIA G2 Series are the company's latest consumer-grade solutions for today's hardcore enthusiasts and mainstream DIY system builders. Kioxia's new SSDs, which are products under development, will be on reference exhibit at the China Digital Entertainment Expo and Conference (ChinaJoy) in Shanghai from July 30th to August 2nd.

Using the next generation PCIe Gen4 x4 interface, the EXCERIA PRO Series is built for demanding PC environments. This brand new series will offer more than 2x the max sequential read speeds of the PCIe Gen3 based EXCERIA PLUS Series, delivering a high performance storage experience for content creators, gamers and professionals.

Western Digital May Introduce Penta Layer Cell (PLC) NAND by 2025

Western Digital has apparently delayed the introduction of Penta Layer Cell (PLC) NAND-based flash to 2025. The company had already disclosed development on the technology back in 2019, around the same time that Toshiba announced it (Toshiba which is now Kioxia, and a Western Digital partner in the development of the technology). The information was disclosed at Bank of America Merrill Lynch 2021 Global Technology Conference, where Western Digital's technology and strategy chief Siva Sivaram said that "I expect that transition [from QLC to PLC] will be slower. So maybe in the second half of this decade we are going to see some segments starting to get 5 bits per cell."

PLC is another density-increase step for NAND flash, whereby each NAND cell can have five bits written into it, thus increasing the amount of information available in the same NAND footprint. To achieve these 5 bits, each cell must store one of 32 voltage states, which in turn inform the flash controller of which corresponding data bits are stored herein. Siva Sivaram said that he expect the technology to take some more time to mature than most, due to the need for controller development that can take advantage of the increased density while making up for the shortcoming in this increased bit-per-cell approach (lower endurance and lower performance). PLC won't bring us HDD-tier storage density by itself (it only enables storage of 25% more data per cell); however, when paired with increasing layers of NAND flash, those 25% extra quickly add up.

Enterprise SSD Prices Projected to Increase by More Than 10% QoQ in 3Q21 Due to Growing Procurement Capacity, Says TrendForce

Enterprise SSD procurement has been rising on the back of growing server shipments since 2Q21, according to TrendForce's latest investigations. In particular, the share of 8 TB products in shipments of SSDs to data centers has shown the most noticeable growth, which is expected to persist through 3Q21. However, certain SSD components and parts may be in shortage due to insufficient foundry capacity. TrendForce is therefore revising the QoQ hikes in contract prices of enterprise SSDs for 3Q21 to 10-15% from the previous projection of 5-10%.

TrendForce further indicates that the high demand for enterprise SSDs in 3Q21 is attributed to several factors. First, North American cloud service providers (hyperscalers) have pretty much completed their inventory adjustments and now continue to expand their storage capacity. Second, the flow of incoming orders to traditional server brands is getting stronger over the quarters as government agencies and SMBs increase their budgets for IT infrastructure. Third, Intel and AMD are ramping up production for server CPUs based on their respective new processor platforms. Following the adoption of new CPUs, the overall demand for enterprise SSDs has also shifted to higher-density products because clients want to upgrade their computing power and storage capacity. Specifically, demand is mainly trending toward 4/8 TB SSDs since raising NAND Flash density can lower the cost of SSD deployment.
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