The surge in demand for memory semiconductors from server vendors, driven by the popularity of generative artificial intelligence, is fueling an increase in orders for quad-level cell (QLC) technology-based NAND flash. Samsung Electronics and SOLIDIGM of SK Hynix, the only two companies mass-producing QLC-based NAND flash in the semiconductor industry, stand to benefit from this trend.
According to TrendForce, a global market research firm, on Apr. 25, large North American IT server companies ramp up orders for storage products this year. With orders of enterprise-class solid-state drives (SSDs) for servers rising, QLC NAND-based products are favored for their ability to provide expanded storage capacity. TrendForce predicts that QLC NAND sales will be more than quadrupled year-over-year.
QLC refers to a structure allowing 4 bits of data to be stored in a single cell, the basic storage unit of NAND. Typically, NAND flash can hold 1-3 bits of information per cell. For example, a single-level cell (SLC), prevalent until the 1990s, can hold 1 bit in a cell while multi-level cell (MLC) and triple-level cell (TLC) technologies, common in the 2000s and 2010s, respectively, store 2 bits and 3 bits per cell, respectively.
QLC technology represents a significant advancement beyond TLC. With 4 bits of information per cell, QLC NAND flash can store more data and reduce chip size. Theoretically, it offers a 30% increase in density compared to TLC.
