Samsung Electronics has agreed to supply
Google with its advanced three-dimensional NAND flash (3D NAND) solid
state drives (SSD).
This deal is considered another huge boost
for Samsung to go ahead of its chief overseas rivals in the race for
development of 3D NAND technology, said officials.
"The agreement
calls for Samsung to supply 3D NAND SSD products for Google
datacenters. Samsung is in discussions with Google to end some minor
differences such as guaranteed shipments and pricing," an executive from
a Samsung Electronics partner company told The Korea Times, Tuesday.
The exact value of the deal is unknown, but the executive said the worth is "sizeable."
A
Samsung Electronics spokesman declined to comment on the agreement.
Google representatives were not immediately available for comment
either.
The deal comes a few days after its chief U.S.-based
memory chip rival Micron Technology teamed up with Intel for their new
3D NAND technology.
Samsung's factory in Xian, China ― the main
location to fabricate 3D NAND chips ― will increase its annual shipments
of 3D NAND chips to 960,000 wafers this year, from last year's
estimated 480,000, according to research firms.
From a technology
point of view, 3D NAND is a type of flash memory that stacks memory die
on top of each other within a single package using specialized
interconnectors. The vertical stacking allows for a significantly higher
density of memory cells and improves performance and reliability.
The
3D NAND is a breakthrough in overcoming the density limit currently
facing the planar (2D) NAND architecture and floating gates used in
conventional flash memory, as well as yielding speed and endurance
improvements.
3D NAND SSDs for datacenters have higher margins
than those used in portable devices such as notebooks and smartphones ad
datacenters need more storage capacity and faster speeds for
data-processing.
In a related note, Samsung previously agreed
with Amazon to export its 3D NAND technology, while Apple was testing
the quality of Samsung 3D NAND SSDs as the iPhone designer also intends
to use Samsung products. Facebook is another target for Samsung to
promote its 3D NAND SSDs.
Samsung seeks to improve its 3D NAND
technology as the world's biggest memory chip producer believes it will
be an important growth driver.
In August 2013, Samsung released
the first-generation SSDs for datacenters and the company released the
3D NAND SSDs in October last year.
While Samsung has first mover
advantage, SanDisk, Toshiba and SK hynix are also well positioned to
benefit from the industry's shift and come up with their 3D NAND
offerings.
Samsung, however, say it will be several generations
ahead and will have solved the teething problems of controller design
and other architectural issues.
http://www.koreatimes.co.kr/www/news/tech/2015/03/133_176227.html
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