[News] What Are Chinese Enterprise SSD Manufacturers Competing For?

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With the rapid adoption of AI applications, the demand for high-performance, reliable storage products is growing, drawing unprecedented attention to enterprise SSDs. The global SSD market is currently dominated by five major manufacturers, but as AI gains traction, Chinese enterprise SSD supply chain players are rising quickly through technical breakthroughs.

The enterprise SSD supply chain encompasses three main segments: NAND Flash memory, controller chips, and finished products. NAND Flash serves as the core storage medium and vehicle, available in formats like SLC (Single-Level Cell), MLC (Multi-Level Cell), TLC (Triple-Level Cell), and QLC (Quad-Level Cell).

The controller chip manages data read and write operations, with PCIe technology now the mainstream interface, while SATA and SAS also serve niche markets. The final product stage includes the design, production, and sales of enterprise SSDs.

Due to their significant control over NAND Flash memory, major flash manufacturers hold a dominant position in the enterprise SSD market. According to recent data from global market research firm TrendForce, the top five global enterprise SSD brands by revenue for Q2 this year are Samsung, SK Group (including SK Hynix and Solidigm), Micron Technology, Kioxia, and Western Digital. Collectively, these companies achieved revenues of $5.738 billion, reflecting a quarter-on-quarter growth of 52.7%.

At the same time, Chinese enterprise SSD manufacturers have seen notable growth in recent years, driven by technological innovation and market experience. Notable players in different segments of the enterprise SSD supply chain include Yangtze Memory, DapuStor, DERA, Union Memory, Zettastone, XITC, Memblaze, Unis Flash Memory, and HippStor.

The AI wave is driving massive demand for data storage and processing, which in turn imposes high requirements on the storage market for performance, cost-effectiveness, power efficiency, and reliability.

Domestic enterprise SSD manufacturers are racing to advance in these areas. For instance, in the field of flash memory, they are focusing on QLC technology, which can store more data within the same physical space compared to SLC, MLC, and TLC, thus meeting the high-capacity needs of big data and cloud storage applications.

In controller chip technology, the focus is on the PCIe 5.0 standard. Released by PCI-SIG in 2019, PCIe 5.0 doubles the data transfer speed of PCIe 4.0, enabling faster processing of large data volumes and boosting overall performance, which opens up significant growth potential for enterprise SSDs.

In China’s highly competitive enterprise SSD market, standing out requires more than simply obtaining high-quality NAND Flash and controller chips. Companies must integrate and optimize these components through innovative technology to ensure product performance and reliability, creating a competitive edge that differentiates their offerings from similar products.

 
(Photo credit: Yangtze Memory)