In the era of AI and big data, new market demands are emerging in the storage industry, and QLC NAND SSDs, which play a critical role in AI training. This suggests that NAND flash may be on the verge of a new growth opportunity.

QLC, or Quad-Level Cells, refers to NAND flash where each storage cell can record 4 bits. Each cell maintains a standard size, and compared to traditional SLC, MLC, and TLC technologies, QLC enables higher data density, allowing more data to be stored in the same space.

The Advantages of QLC Flash

QLC flash offers several key advantages:

• Capacity: Compared to mainstream TLC flash, QLC increases storage density by 33%.
• Cost: With the same number of flash chips cut from a wafer, QLC provides about 33% more storage capacity than TLC, leading to a lower cost per unit of storage.
• Total Cost of Ownership (TCO): QLC-based SSDs offer lower TCO compared to traditional HDDs. TCO includes considerations like storage density, reliability, and power consumption. While QLC’s write performance is somewhat inferior to other technologies, its read performance is strong.

However, QLC technology also faces some challenges. Since data is stored across more charge levels, this increases the risk of data vulnerability, requiring more advanced error correction and data protection mechanisms. QLC storage devices typically need stronger error correction algorithms and robust data protection to ensure integrity and reliability.

Despite these challenges, as technology continues to advance, QLC is expected to play an increasingly important role in the storage field, potentially revolutionizing the entire information industry.

QLC NAND is Entering the AI SSD Battlefield

Many believe that QLC SSDs are a complement to TLC SSDs, particularly suited for read-intensive and mixed read/write workloads, such as those found in AI, content delivery networks, and machine learning.

In AI applications, TrendForce points out that SSDs are used in AI inference servers to help adjust and optimize AI models during inference, especially by updating data in real-time to fine-tune model outputs. AI inference mainly supports Retrieval-Augmented Generation (RAG) and Large Language Models (LLMs), and SSDs can store reference documents and knowledge bases for RAG and LLM to generate richer responses.

As more generated information is displayed as videos or images, data storage demands increase, making large-capacity SSDs, such as 16TB+ TLC/QLC models, essential for AI inference.

Currently, companies like Samsung, SK Hynix’s Solidigm, Western Digital, and Kioxia hold key positions in the QLC SSD market.

Industry experts are optimistic about the future of QLC SSDs, emphasizing their benefits for data centers, cloud storage providers, and enterprises handling massive amounts of data. QLC SSDs are seen as a potential game-changer for the NAND flash market.

TrendForce also predicts that QLC will account for 20% of NAND flash shipments by 2024, with this share expected to rise in 2025. Moreover, QLC is likely to expand into consumer-embedded storage such as eMMC and UFS, with some products already adopting QLC as the storage medium.

Industry forecasts suggest that by 2025, large-capacity QLC enterprise SSDs will rise, and smartphones will start using QLC-based UFS storage solutions.

(Photo credit: Samsung)

According to the reports from EETimes China and Blocks &Files, Western Digital (WD) is said to be considering spinning off its NAND and SSD business, which could be valued similarly to Solidigm.

Reportedly, WD plans to split into two separate business units: one focused on producing hard disk drives (HDDs) and the other on NAND flash memory and SSDs. This strategy is expected to enhance operational efficiency within each unit, allowing them to concentrate on their core strengths and ultimately achieve greater market value.

According to the report, WD CEO David Goeckeler will lead the NAND and SSD unit, while Executive Vice President of Global Operations Irving Tan will take on the role of CEO for the HDD business

Citing calculations by an analyst, the report notes that  the standalone value of WD’s NAND and SSD business could range from USD 10 billion to 22 billion. This suggests that spinning off these businesses could lead to a higher market valuation for the company.

The report states that the market has not yet fully recognized the value of WD’s NAND business, and that the combined independent value of the two companies post-split will be at least USD 30 billion, with the potential to exceed USD 40 billion.

Read more

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(Photo credit: Western Digital)

Facing increased market demand and the ongoing recovery of the memory industry, a report from Korean media outlet ETNews has reported that Samsung has confirmed its investment plan for the 6th-Generation DRAM production line at the Pyeongtaek P4 plant, with the goal of starting mass production in June 2025.

Reportedly, the 6th-generation DRAM, known as ‘1c ,’ is a next-generation DRAM utilizing 10nm-class technology. Despite it is said to be a product that has not yet been commercialized in the global semiconductor industry, both Samsung Electronics and SK hynix are already preparing for mass production.

Samsung’s Pyeongtaek P4 is a comprehensive semiconductor production center, divided into four phases.

As per ETNews, Samsung plans to initiate 1c DRAM production by the end of this year. The company is said to be considering launching HBM4 using 1c DRAM in the second half of 2025.

Given that HBM consumes significantly more DRAM than traditional memory, it is speculated by the report that Samsung’s construction of the 1c DRAM production line at the Pyeongtaek P4 plant may also be in preparation for HBM4.

As per TrendForce’s latest report on the memory industry, it’s revealed that DRAM and NAND Flash revenues are expected to see significant increases of 75% and 77%, respectively, in 2024, driven by increased bit demand, an improved supply-demand structure, and the rise of high-value products like HBM.

Furthermore, TrendForce also reports that Samsung’s P4L facility will be the key site for expanding memory capacity starting in 2025, starting with NAND production. Equipment installation for DRAM is expected to begin in mid-2025, with mass production of 1c nanometer DRAM slated to commence in 2026.

Read more

• [News] Samsung Develops Custom HBM with Tech Giants, with Commercialization Expected in HBM4
• [News] Overview of Expansion Plans by HBM Giants

(Photo credit: Samsung)

Japanese NAND flash giant Kioxia announced today (August 1st) that the building construction of Fab2 (K2) of its Kitakami Plant in Iwate Prefecture was completed in July. As demand is recovering, the company will gradually make capital investments while closely monitoring flash memory market trends. Kioxia plans to start operation at K2 in the fall of Calendar Year 2025, according to its press release.

A portion of investment for K2 will be subsidized by the Japanese government according to the plan approved in February 2024, according to Kioxia.

In addition, the company notes that some administration and engineering departments will move into a new administration building located adjacent to K2 beginning in November 2024 to oversee the operation of K2.

According to a report from Nikkei on July 31, Kioxia’s Kitakami Plant started production in 2020,with the construction of K2 began in 2022. Initially, K2 was scheduled to commence production in 2023.

However, due to a downturn in the memory market and weak demand for NAND Flash used in smartphones and PCs, Kioxia started to reduce production in October 2022, with the extent of production cuts exceeding 30%. As part of these production reduction measures, Kioxia postponed the production start of the K2 facility.

Nikkei’s report further indicates that with market conditions recovering, Kioxia ended its production cuts in June 2024, and the current production line utilization rate has returned to 100%.

To mass-produce advanced memory products, Kioxia, in collaboration with Western Digital (WD), plans to invest a total of 729 billion yen in the Yokkaichi and Kitakami plants, with the Japanese government providing up to 243 billion yen in subsidies.

The Kitakami plant will produce the most advanced “8th generation” memory, with a monthly production capacity of 25,000 wafers. These will be used in AI data centers, as well as in smartphones, PCs, and automotive applications.

On June 26, according to industry sources cited in a report from Reuters, Kioxia plans to submit an initial public offering (IPO) application to the Tokyo Stock Exchange in the near future, aiming to go public by the end of October. Sources indicate that Kioxia will submit its official IPO application by the end of August, with a target listing date at the end of October.

Read more

• [News] NAND Flash Giant Kioxia Reportedly Plans IPO by Late October amid Market Recovery
• [News] Kioxia Optimistic about NAND Market Sentiment; Price Hike Expected in Q2

(Photo credit: Kioxia)

According to TrendForce’s latest memory spot price trend report. Details are as follows:

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