2Q13 wrapped up nicely for most of the major NAND manufacturers. Total revenue amounted to more than $5.75 billion for the quarter, which is a 30% YoY increase
. Several items helped with this increase including smartphone and tablet demand, depreciation of the Japanese yen, and enterprise-grade solid state drives.
At the annual Flash Memory Summit
, three-dimensional (3D) vertical NAND flash memory and 16nm planar NAND were two of the hot topics
. Both of these new technologies are leading the way to the future of NAND flash memory. As manufacturers continue to push through the preliminary stages of these two products, the NAND shortage
is expected to continue for at least another quarter according to iSuppli
. SSDs continue to generate increasing demand for products such as PC tablets and Ultrathins, leading to spot shortages in the NAND market.
Adoption of SSD technology will continue to mature thanks to the fact that spinning hard disk drives (HDDs) have reached their speed limit
. SSDs moved quickly into the mobile and ultrabook market, and are positioned to take over the enterprise market thanks to an ever-increasing demand for reliable, low power devices. As we reviewed last month
, the HDD market is expected to dip to 64% by 2017 and in a $30 billion enterprise storage market, this is a huge opportunity for SSD manufacturers. Groups of SSDs can process large amounts of data more efficiently and they can also be utilized through PCI-Express 3.0 slots, which results in faster performance than HDDs on a SATA interface. Even companies like Facebook
have been noticing the advantages of SSD vs. HDD as they push to keep up with the large amounts of data that users are storing on their site.
The holidays are approaching quickly, so we can expect to see the fruits of the NAND manufacturers’ labor come to pass when new tech products are announced this fall. We will also keep an eye on the enterprise SSD market as the interest in cloud computing continues to grow, and migration moves to the 20nm process.