Taiwan’s Lite-On Technology Corp. (Lite-On) announced on August 30 that it will offload the entire stake of its SSD business to Toshiba Memory Holdings Corp. (TMCHD). The purchase price is provisionally set at US$165 million, and the transaction is scheduled to be completed by 1H20. TrendForce’s preliminary assessment of this deal finds that Lite-On’s SSD business has significant advantages in operational efficiency and flexibility. Thus, the acquisition could be a major boon to TMCHD in terms of enhancing the range and quality of product offerings.
According to research by DRAMeXchange , a division of TrendForce , the NAND flash industry this year is clearly exhibiting signs of oversupply, and SSD suppliers have gotten themselves into a price war, causing SSD prices for PC OEMs to take a dive. Average contract prices for 512GB and 1TB SSDs have a chance to plunge below US$0.1 per GB by the end of this year, hitting an all-time low. This change will cause 512GB SSDs to replace their 128GB counterparts and become market mainstream, second only to 256GB SSDs. We may also look forward to PCIe SSDs achieving 50% market penetration, since PCIe SSDs and SATA SSDS are nearly identical in price.