The last couple of years have seen the flash memory market stagnate, but a surge in demand for memory chips in the fourth quarter of last year triggered a price increase, marking a potential reversal for the sectorAs we venture into 2024, questions loom over whether the Chinese flash memory market will achieve full recovery or take a turn for the worseThe burgeoning AI wave in China is particularly pivotal—what significant impacts will it have on the flash memory sector? Can we expect QLC SSDs to gain widespread adoption this year? Additionally, what new trends will emerge in related technologies such as PCI-E 5.0 and CXL? These were some of the queries raised at a recent summit focused on the Chinese flash memory market, where key players across the globe gathered to discuss market dynamics and technological advancements.

Artificial Intelligence (AI) has undeniably become a focal point of discourse in the tech industry, particularly regarding computational power

As the development of AI technologies such as large models advances, several challenges at the data storage level have come to lightKey stakeholders such as Solidigm, SK Hynix, and Samsung discussed these issues during the summit, emphasizing that, while AI significantly propels demand for data storage, it also introduces complexities that stakeholders must navigate.

The influence of AI on storage thus encompasses several dimensionsFirst, the rise of multimodal large models has led to an exponential increase in data generation, with Gartner forecasting that by 2025, AI-generated data will account for 10% of total dataSecond, storage solutions must meet the performance demands of GPUs, aiming to enhance their utilization ratesThird, as memory capacity continues to increase, considerations around energy usage, spatial efficiency, and costs become paramountSolidigm’s Vice President for Sales in the Asia-Pacific region, Ni Jinfeng, noted that reports indicate in certain scenarios, storage energy consumption can account for as much as 35% of total server power usage

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This challenge is one that firms working with AI must confront head-on.

Indeed, the rise of large AI models signifies a massive engineering challenge focused on processing high-quality data at scaleThis evolution will trigger cascading effects across related sectors, including data centers and edge computingIn light of rapidly evolving AI technologies, understanding how best to respond to the new data storage requirements is crucial.

Currently, there are two primary technological pathways to meet the burgeoning storage demands instigated by AI: one involves traditional hard drives, where increased platter density and additional platters enhance capacity; the other centers on flash memory, capitalizing on its high capacity and low power consumption to achieve a balance among cost, energy usage, and physical space.

According to Ni, the swift development of AI technology represents a revolutionary shift in storage requirements, highlighting the advantages of flash memory in terms of performance, capacity, and total cost of ownership

Market observations reveal that substantial investment in AI technologies, particularly in North America, has catalyzed an uptick in demand for high-capacity SSDs, a trend that Ni forecasts will soon penetrate the domestic market in China as well.

The recovery of the storage market is most clearly evidenced by the increasing demand for capacityIn the flash memory domain, 2023 has solidified a robust foundation for capacity densityCompanies like Solidigm, SK Hynix, Yangtze Memory Technologies, and Samsung have elevated NAND technology to new heightsFor instance, Solidigm has been actively promoting its QLC SSD products and recently launched a 61.44TB QLC SSD, representing significant strides in the field.

Industry experts are anticipating that the QLC SSD will gain traction in 2024, becoming a mainstream choice as its quality, reliability, and longevity have been substantiated across various applications

Specifically, in the consumer and mobile markets, the QLC SSD is gaining ground in sectors such as PC and mobile devicesWith the increasing prevalence of AI applications, including AI smartphones and AI PCs facilitated by large model technology, the application of QLC SSDs is likely to accelerateNi emphasizes that due to current capacity reduction, potential supply-demand constraints may arise in the QLC SSD market this year; however, persistent long-term demand will inevitably drive the sector forward.

Likewise, in the enterprise space, China's data centers have a relatively modest representation of SSDsBut recent advances in technologies like ZNS, PCI-E, and CXL—as well as the rise of applications driven by AI and big data—position QLC SSDs as a compelling option for enterprise useNotable players in storage array systems, such as DELL EMC, NetApp, and Inspur, have introduced products utilizing QLC SSDs in 2023. As storage array manufacturers fully embrace this technology, QLC SSDs are expected to proliferate within enterprise data centers in 2024.

Furthermore, existing implementations of PCI-E 4.0 combined with QLC SSDs have already shown significant promise in data centers for read-intensive and hybrid workloads

As PCI-E 5.0 products reach commercial availability, a continued spread of QLC SSD adoption seems imminent.

"Looking at the current landscape, both the consumer and enterprise markets are ready for a transition,” Ni states, “In the consumer space, QLC is poised to accelerate its replacement of TLC, while in the enterprise domain, it will replace HDDs."

However, the rapid development of the flash memory market demands sustained attention to eco-system buildingThe rapid acceleration of flash memory hardware in recent years highlights the necessity for software innovation and robust ecosystem infrastructure, particularly accounting for the unique characteristics of the Chinese market—whether it’s the operating systems, processors, or applications in use.

Ni articulates that the complexity of data center applications in China necessitates a collaborative effort among all stakeholders to promote the widespread adoption of flash technology

For instance, QLC SSD-related acceleration and application innovation will require synergy from cloud computing clients, enterprise clients, OEMs/ODMs, and operating system providers.

A prime illustration of this collaborative potential can be seen in the prevalent use of various service architectures by data center users, including Intel, AMD, ARM, IPU/DPU, and GPUThese architectures often encounter challenges related to optimizing mixed workloads, capitalizing on storage capacity and performance, and managing write amplificationTo address these issues, Solidigm has been employing its CSAL software to establish a caching layer designed to optimize these complex data center workloads, converting random write workloads into sequential writes, which significantly enhances storage efficiency.

"CSAL is now open-sourced, allowing participants across the entire ecosystem to adopt it, thereby facilitating further adoption and application of flash memory technology," Ni explains.

The rise of AI also provides a timely opportunity to overhaul data center infrastructure