Solid state disks

	The MasterDrive from Super Talent of mainland China uses SLC NAND Flash.

Taiwan and mainland China makers join early adopters worldwide with standalone SSDs and module-type products.

Solid state disks (SSDs) are currently the most promising line in the NAND flash industry. Among the different NAND flash applications, SSDs are forecast by iSuppli to experience the fastest growth rate, rising from 5 percent this year to 40 percent by 2012. Revenue from this industry is estimated to reach $2.6 billion in 2009, and will more than double to about $6 billion by 2011, based on data from SanDisk, which incorporated forecasts from Gartner, IDC, iSuppli and Korea Inv.

The range of applications is expanding. SSDs are currently being used in storage, server, portable and desktop PC, consumer electronics, industrial, medical, aerospace and military applications. Portable PCs drive applications with 81 percent share, followed by consumer electronics with 12 percent.

Supplier support is likewise gaining steam. Most of the earlier adopters are large players such as BiTMICRO Networks Inc., Texas Memory Systems Inc. and San Disk-acquired M-Systems. Samsung Electronics from South Korea, and Toshiba and TDK from Japan are also developing SSDs. Intel joined the fray in 2007. Micron Technology Inc. and Toshiba said they will release new SSDs before this year ends. Dell and HP are considering SSDs for PCs, and HP and IBM have started developing SSDs for servers. Samsung, Dell, Sony and Toshiba are developing high-end laptops integrating SSDs.

Industry observers in Taiwan have a rosy outlook for SSDs, with low-cost PCs, ultra-mobile PCs (UMPCs) and thin clients being the key growth areas. Data from the IDC indicate shipments of ultra-low cost PCs will reach about 10 million units in 2008, and will continue increasing to hit 33 billion units in 2012. Active supporters of SSDs in Taiwan include Coresolid Storage Corp. (CSS), Ritek Corp., Apacer Technology Inc. and A-Data Technology Inc. Production on the island yields standalone SSDs and modules, with capacity breaching the 128GB mark.

The product line is very nascent in mainland China, and most players are waiting for production costs to slide significantly before diving in. Nevertheless, buyers looking to source in mainland China will find an array of products, including single-level cell (SLC)-based SSDs meant for the high-end market. Some suppliers have also expressed plans to increase their production volumes in anticipation of a rise in demand beginning 2009.

Behind all the hype, however, are issues that need to be resolved to push the line forward. Foremost of these is pricing, upon which mainstream adoption hinges. At present, SSD prices are several times higher than closest rival hard disk drives (HDDs), and the only way to reduce prices is for the cost of flash memory to slide substantially.

More suppliers and industry watchers are looking at SSDs as a direct competitor to HDDs, but many also think that the two storage products will co-exist because they are ideal for different applications.

SSDs enjoy a comparative advantage over HDDs in applications that require less weight, compact design and small capacity, but with high durability. Compared with HDDs, SSDs have higher reliability and durability, as well as longer battery life.

Unlike HDDs, SSDs contain no mechanical parts, which contribute to the latter’s silent operation and mechanical reliability. SSDs use flash memory, which enables the product to function faster during bootup and read times as opposed to HDDs that use platters to store data and take time to restore information. SSDs also have lower read/write latency (seek) time, power consumption and heat production.

SSDs can support various form factors and are not limited to 1.8in and 2.5in HDD form factors. For applications that require small capacity, SSDs may offer a more cost-efficient solution than HDDs. The former could also decrease product weight by 10 times compared with HDDs.

Meanwhile, the operational lifespan of an HDD is estimated at just three years. According to Gartner Inc., the failure rate of hard disks in laptops is 45 percent of all hardware failures, same as the failure rate of motherboards.

Between the two products, and something that could become a transitional product, is the hybrid HDD. It has a buffer of nonvolatile flash memory to store data during normal use as if its platters were off. It uses SATA. Samsung, Seagate, Intel and Fujitsu are currently pursuing product development work along this line.

Despite the strong positioning for SSDs, suppliers of the product admit the need for a single chip that can support large storage capacity. The approach for many suppliers at present is to use two chips. As smaller form factors are increasingly emphasized, single-chipset solutions will be key in boosting production of smaller SSDs with large capacity.

Taiwan manufacturers generally offer two types of SSDs. The first type is the standalone SSD which can connect to PCs via USB, PATA, SATA, Express Card or Secure Digital High Capacity (SDHC) card interface. The second type is the SSD module for embedded systems.

DRAM and flash are the two memory media mainly used by Taiwan suppliers with most companies using nonvolatile flash memory. Most Taiwan makers can offer SSDs with a capacity of up to 128GB.

Coresolid announced its latest SSD at this year’s Computex. The 2.5in SATA II SSD features 7+15Pin SATA II and 8GB to 128GB capacity.

SSDs from CSS are claimed to offer faster bootup time, more efficient data search capability, and lower power consumption and heat generation.

Veritech Industrial Ltd has launched a new SSD for mobile computers, the Veritech SSD. The unit is designed to withstand mechanical failure caused by shocks and vibrations. It is also designed to yield less heat. The 2.5in SSD can support 16GB to 128GB capacity.

Prices in Taiwan generally start at $250 for 32GB and $300 for 64GB SSD models. Interviewed companies said prices also depend on actual shipment prices of NAND flash chips.

Taiwan’s Apacer sees SSDs gaining traction in the POS, kiosk and digital signage industries. Gaming and surveillance are also growth areas for the line. However, SSDs for these markets will have to overcome the technology challenges required to deliver high reliability and durability, as well as the environmental pressures caused by dust, water and varying temperature and humidity levels.

Apacer has released its Serial ATA Flash Drive (SAFD) series of SATA SSDs designed for use in rugged laptops, military devices, thin clients, POS systems, medical instruments and surveillance systems. The product supports 64GB capacity, with 128GB models scheduled to be available in Q4 2008.

The company’s CAFD series of 2.5in combo ATA flash drives contains two finds of NAND flash in one device: SLC and multilevel cell (MLC). According to Apacer, such hybrid SSDs can reduce the cost by 30 percent compared with SLC-based models.

CSS, which is a joint venture between Power Quotient International Co. Ltd (PQI) and TDK Corp., has developed the MicroSATA SSD (Solid State Drive). This product uses the GBDriver HS, an SSD controller LSI for notebook PCs currently under development at TDK; system design for flash memory storage system; and Disk on Module (DOM) from PQI.

The high price of SSDs in mainland China has limited thus far its adoption to the military, aviation and navigation sectors. Starting 2009, however, industry observers forecast that the low power consumption advantage offered by SSDs will encourage more users to switch to it for their PC servers and office and home devices. By 2010, SSDs will be widely used in laptops, portable media players (PMPs) and digital cameras worldwide.

Some mainland makers classify SSDs into SLC SSDs and MLC SSDs. The former are generally positioned at the high end, and the latter belong to the low-end segment.

Memoright Memoritech (Shenzhen) Co. Ltd is concentrating on SLC SSDs. It now has two series of SSD products: the MR series and Dual Port series. All of its products are distributed under its own label, Memoright. The company expects falling NAND chip prices to encourage more players into the line. The company holds the IPR for its host controller.

Shenzhen CXC Electronic Mfg Co. Ltd launched its first SSD in 2007, the P18UB064. It is set to three new models this year.

Super Talent Technology Ltd has released its Master Drive series of 2.5in SSDs supporting SATA II. The series has a maximum storage capacity of 120GB. The company produces industry-standard memory modules and develops custom memory solutions.

Despite the slow market penetration, more suppliers in mainland China plan to boost their production of SSDs.

Shenzhen CXC’s total output of SSDs reached 2,000 units in 2007. This year, the company estimates that the monthly output of SSDs will reach 10,000 units, accounting for about 25 percent of the company’s monthly production capacity.

Shenzhen CXC has a 4000sqm plant equipped for in-house SMT, assembly, testing, silk-spray and packaging. It is scheduled to build another factory in Shanghai in the next three years.

In 2007, Shenzhen CXC’s annual sales of SSDs accounted for only 2 percent of the total sales of all products. The company projects at least 15 percent growth in SSD sales this year.

In H1 2008, Memoright Memoritech’s monthly output of SSDs reached about 2,000 units, accounting for 40 percent of the company’s monthly production capacity. It plans to expand its factory area from 2000sqm to about 5000sqm in H1 2009 to increase its capacity to 20,000 SSD units a month. Memoright Memoritech’s SSDs are exported, with the US taking up 50 percent share.

Super Talent predicts its SSDs output this year will reach about 10,000 units. All of the company’s SSDs are exported to the US and Europe. According to Super Talent, it faces tight price competition from South Korea companies, especially Samsung.

Taiwan’s Veritech has been making and selling memory products for more than 10 years. The company produces various memory modules for desktop and notebook PCs, including flash cards, MultiMediaCards (MMCs) and pen drives for both Veritech and OEM brands.