[News] SK hynix’s Solidigm Reportedly Eyes New Taiwan Data Center SSD Site, Dec. Shipments Planned
Solidigm is reportedly expanding its Taiwan production footprint as surging AI data center demand drives greater need for enterprise SSDs. According to Seoul Economic Daily, sources say the SK hynix NAND flash subsidiary told customers in a product change notification last month that it is adding a new original design manufacturing (ODM) site in Taiwan for data center SSDs. Products from the new site are expected to begin shipping in December under the same terms as existing output.
The reported move would expand Solidigm’s SSD supply capacity in Taiwan. Unlike in Dalian, China, the company does not operate its own NAND fab in Taiwan and instead outsources part of its production to local ODM partners, the report notes. Powertech and Pegatron are known to be among its existing partners.
The expansion is reportedly aimed at deepening cooperation with Taiwan’s major AI server makers, which serve as a key link between SSD suppliers and data center operators. Taiwan plays a central role in the global AI server manufacturing ecosystem, with major players including Foxconn, Quanta, Wistron, Wiwynn, Inventec, and Gigabyte, according to the report.
Solidigm Deepens Ties With Taiwan’s AI Server Supply Chain
Major technology companies are also strengthening ties with Taiwanese server makers. As Seoul Economic Daily notes, NVIDIA said in May that Foxconn, Quanta, Wistron, and Wiwynn had joined NVIDIA DSX, its GPU-based data center ecosystem. AMD also announced a US$10 billion investment in Taiwan and highlighted cooperation with Wiwynn, Wistron, and Inventec.
Solidigm’s parent company, SK hynix, has also been strengthening ties with local suppliers through its Taiwan unit, the report adds. Solidigm has invested NT$16 billion, or about KRW 680 billion, in Taiwanese DRAM maker Nanya Technology, aiming to secure DRAM used in SSDs locally and strengthen supply capacity.
SK hynix Expands NAND Capacity as Enterprise SSD Demand Surges
The Taiwan expansion comes as SK hynix ramps up SSD capacity globally. According to the report, the company plans to build M17, a new KRW 80 trillion NAND fab in Cheongju, with operations targeted for 2029, while also pursuing an expansion of its second Dalian plant.
Meanwhile, Reuters reports that Solidigm is considering its first U.S. NAND fab, with upstate New York emerging as a leading candidate. The potential facility would reduce its reliance on its NAND production site in Dalian, China. Reuters adds that Solidigm is reportedly weighing a U.S. IPO that could raise US$15 billion and value the company at up to US$150 billion.
The capacity push comes as SSDs evolve beyond conventional storage toward AI storage that increasingly supports AI computing workloads, the report adds. According to TrendForce, higher shipments and contract prices drove combined revenue for the top five enterprise SSD brands to US$37.59 billion in 2Q26, up 103.6% QoQ. SK hynix Group ranked second behind Samsung during the quarter, with enterprise SSD revenue exceeding US$8.63 billion.
Looking ahead, TrendForce projects enterprise SSD bit demand to grow more than 80% YoY in 2026 as CSPs expand AI inference infrastructure. With most incremental supply already committed, enterprise SSD price growth is expected to accelerate in 4Q26.
Read more
- AI Server Demand Sustains Memory Contract Price Increases in 4Q26, While Consumer-Side Pressure Persists, Says TrendForce
- Weekly Radar 004: DRAM Tightness Is Becoming an Enterprise SSD Constraint
(Photo credit: Solidigm)
