Enterprise SSD revenue up 14% in 1Q22
Article by: TrendForce
Overall enterprise SSD revenue reached $5.58 billion in the first quarter, up 14.1% quarter-on-quarter, according to TrendForce.
North American data centers saw improved component supply after February, leading to a recovery in the volume of enterprise SSD purchase orders, according to research by TrendForce. As server brands resumed normal office work after the pandemic, increased investment spending on related IT equipment also boosted order growth. The addition of Kioxia’s raw material contamination incident led to higher prices for some rush orders, pushing overall enterprise SSD revenue in the first quarter (1Q22) to $5.58 billion. dollars, a growth of 14.1% quarter over quarter (QoQ).
According to TrendForce, Samsung and SK hynix (including Solidigm) were the top two performers in 1Q22. Early in the year, demand from large-scale data centers led to high inventory levels due to component mismatches, leading Samsung’s order growth to miss expectations. However, as the repercussions of the WDC and Kioxia contamination incident impacted NAND Flash production capacity in 1Q22, server customers quickly turned to Samsung for additional orders, driving revenue up. of the business in 1Q22 to $2.77 billion, up 14.8% quarter-on-quarter.
Solidigm’s bit shipments are still on par with 4T21, even amid a tight control chip (SSD) supply. On the other hand, SK hynix continued to expand its partnership with a single customer in North America, driving SK Group’s enterprise SSD revenue up 10.7% to $1.35 billion. The company’s primary focus this year is to increase SSD shipments, hoping to regain market share lost over the past two years due to supply chain deficiencies.
Micron, ranked third, saw its market share rebound significantly this quarter, reflecting the company’s determination to expand its enterprise SSD market share. It also posted the highest revenue growth in the industry at 32.6% QoQ to US$610 million. Although Micron’s primary customers remain server brands and the SATA interface remains its core product, volume is also growing on the company’s 96-layer PCIe 4.0 SSD, driving revenue growth this quarter to outpace others. competitors. TrendForce says Micron’s PCIe 4.0 products are expected to pass North American hyperscale data center customer verification in 3Q22 and start increasing in volume. However, the only way to ensure its future growth momentum is to increase shipments of consumer PCIe products.
Kioxia initially had the opportunity to see substantial growth in PCIe 4.0 product shipments this year. With verification of a number of Chinese customers at the end of 2021, there was a significant increase in shipments to the Chinese market in 1Q22. In particular, with the mass production of PCIe 5.0 SSDs to follow in 2H22, there will be opportunities to further expand partnerships with hyperscale data center customers. Although the contamination incident affected some customers’ confidence in the partnership, resulting in slower enterprise SSD shipments, PCIe interface product volume still drove quarterly revenue up 11.9 % at $470 million, ranking fourth.
Western Digital, ranked fifth, reported $380 million in enterprise SSD revenue in 1Q22, a largely flat quarter. The competitive strength of its enterprise SSD products is less evident, due to the continued decline in supply of its previously dominant SAS products, in addition to the current dominance of PCIe 3.0 products and PCIe 4.0 products which will not be shipped before 2:22 a.m. Since the company’s mass production schedule and production process for PCIe 4.0 products lag behind those of the competition, the possibility of a substantial increase in shipments is not high. Unless the development of next-generation PCIe 5.0 products can be accelerated, there is a risk that the company’s market share will continue to erode.