Korean SSD controller manufacturer FADU has announced a strategic partnership with Western Digital to co-develop Flexible Data Placement (FDP), the next-generation enterprise SSD technology. FDP, a newly approved NVMe specification (TP4146) proposed by the Open Compute Project (OCP), aims to reduce write amplification and simplify software ecosystem integration.
The FDP technology, initiated by major companies such as Samsung, Meta, and Google, promises significant advancements in SSD performance and lifespan. According to DRAMeXchange, FDP can enhance SSD write performance by two to three times and optimize data placement within SSD storage. This reduces the write amplification phenomenon, where the recorded data volume far exceeds the actual client data volume, thereby extending the SSD’s lifespan—a crucial innovation for large-scale data centers handling massive data exchanges.
Founded in 2015, FADU specializes in advanced NAND flash technologies for hyperscale, enterprise, and cloud data centers. The company aims to capture 30% of the SSD controller market by 2026. At an IPO briefing in July 2023, FADU’s CEO Jihyo Lee highlighted that global data centers utilized 50 million SSD controllers, with demand expected to double within the next 2-3 years.
Western Digital, a renowned global memory manufacturer, reported revenues of USD 1.71 billion in 1Q24, a 2.4% increase from the previous quarter. Despite this, revenue in the Enterprise SSD sector was USD 133 million, up 18.1% QoQ, reflecting the need for a broader product line to drive growth.
The collaboration between FADU and Western Digital is poised to set a new standard for memory efficiency. The widespread adoption of FDP technology is anticipated to lower total cost of ownership (TCO) and boost SSD performance in enterprise environments. This partnership aligns with Western Digital’s strategic push to accelerate Enterprise SSD product development amidst a cautious outlook for the PC and smartphone markets.
Western Digital is also ramping up shipments of high-capacity storage products, including plans for mass production of 162-layer QLC SSDs and collaboration with third-party controller manufacturers for PCIe 5.0 SSDs. This marks a strategic shift from its traditional in-house IC development approach, emphasizing the company’s commitment to expanding its product range and supporting steady growth in enterprise SSD revenue.
As the demand for high-capacity, high-performance storage products surges, particularly driven by the AI wave, the collaboration between FADU and Western Digital is timely. The advent of new memory technologies, including the rise of 3D DRAM and the potential of SCM, coupled with the upcoming PCIe 6.0/7.0 standards, heralds a new era in storage solutions.
FADU and Western Digital’s partnership underscores the critical importance of innovative storage technologies in meeting the growing needs of modern data centers and enterprise environments, setting the stage for future advancements in SSD technology.
