Solidigm, a subsidiary of SK Hynix, is expanding its solid-state drive (SSD) production base in Taiwan to better respond to the growing demand for AI data centers. This move aims to strengthen ties with Taiwan's robust market, which is home to numerous major tech server manufacturers.
According to industry sources, Solidigm recently announced on its website that it will add a new original design manufacturer (ODM) production site for data center SSDs in Taiwan. The new facility is expected to maintain existing quality standards and begin shipping products to global clients starting in December.
Without its own NAND manufacturing plant in Taiwan, Solidigm has relied on local partners such as Powertech Technology Inc. (PTI) and Pegatron for its contract manufacturing.
This expansion is seen as a strategic move to maximize collaboration synergies within Taiwan's manufacturing ecosystem, which accounts for a significant portion of global AI server shipments.
Currently, major Taiwanese server companies like Foxconn, Quanta, and Wistron play a crucial role in the supply chains of global tech giants such as NVIDIA and AMD. Since SSDs are integrated into these servers before reaching the final data centers, enhancing local supply infrastructure is essential.
At the group level, SK Hynix is also continuously expanding its global SSD production capabilities. The company is working on the construction of a new M17 fab in Cheongju and expanding its second plant in Dalian, China. Solidigm's efforts to integrate into the local ecosystem are expected to position it favorably to meet the surging demand for enterprise SSDs.
* This article has been translated by AI.
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