[News] WD and FADU to Co-Develop Enterprise SSD Technology

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Recently, Korean SSD controller manufacturer FADU announced a partnership with Western Digital to co-develop the next-generation enterprise SSD technology called “FDP (Flexible Data Placement).”

FDP is a standard technology proposed by the Open Compute Project (OCP) and is a newly approved NVMe specification (TP4146) initiated by companies such as Samsung, Meta, and Google. It aims to reduce write amplification while simplifying the integration of the entire software ecosystem.

According to a report from WeChat account DRAMeXchange, this technology not only enhances SSD performance but also significantly extends SSD lifespan.

By markedly reducing the phenomenon of “Write Amplification,” FDP can improve SSD write performance by 2 to 3 times and optimize data placement within SSD storage space. This phenomenon, when the recorded data volume is much larger than the actual client data volume, will greatly extend SSD lifespan, making it a highly regarded technological innovation in massive data exchange environments of large-scale data centers.

• WD and FADU Pioneer the Establishment of a New Standard for Memory Efficiency

Founded in 2015, FADU is a fabless startup primarily developing advanced NAND flash technologies to meet the explosive growth of data storage needs in hyperscale, enterprise, and cloud data centers. FADU is committed to producing high-performance SSD controllers and designing chips for data centers.

FADU aims to increase its market share in the SSD controller field to 30% by 2026. FADU’s CEO, Jihyo Lee, stated at an IPO briefing in July 2023 that global data centers used 50 million SSD controllers at that time, and the demand might double to 100 million in the next 2-3 years.

As a globally renowned memory manufacturer, Western Digital achieved revenues of USD 1.71 billion in 1Q24, a 2.4% increase from the previous quarter. However, due to a limited product line, Western Digital’s revenue in the Enterprise SSD sector for the quarter was USD 133 million, only up by 18.1% QoQ.

It’s worth noting that in 2Q24, the overall consumer market not yet recovers and the outlooks for PC and smartphone market for the year are conservative. Against this backdrop, Western Digital intends to accelerate Enterprise SSD product development to expand future growth momentum.

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.

For this collaboration, FADU and Western Digital predict that widespread adoption of FDP technology will not only help bring down total cost of ownership (TCO) but also establish a new standard for memory efficiency.

Amidst the AI wave, the importance of high-capacity, high-performance storage products is becoming increasingly prominent. HBM is undoubtedly the most sought-after product currently, with demand outbalancing supply and market value continuously rising. Meanwhile, new memory technologies are constantly emerging, heralding the coming of an era of 3D DRAM. Besides, SCM potential is about to be unleashed, and PCIe 6.0/7.0 is poised to be launched.

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(Photo credit: WD)