Rumor
Kioxia and SanDisk seek stable DDR4 supply for enterprise SSDs amid SK Hynix pivot to HBM
Wednesday, March 25, 2026 at 03:23 PM
SanDisk and Kioxia are seeking strategic partnerships to secure stable DDR4 supplies for their enterprise SSD (eSSD) DRAM caches, as they only manufacture NAND. JPMorgan analysts suggest these firms are facing sourcing difficulties for the 512MB to 1GB DRAM required per 4TB of storage. Additionally, SK Hynix may be looking at alternative supply sources as it prioritizes HBM wafer capacity and executes DDR4 end-of-life plans.
Context
On March 26, 2026, memory manufacturers Kioxia and SanDisk (a subsidiary of Western Digital) moved to secure their supply chains by participating in a NT$78.7 billion (approx. $2.5 billion) private placement for Taiwanese DRAM maker Nanya Technology. According to JPMorgan Chase, the deal is a strategic response to a critical shortage of DDR4 components required as caches for enterprise SSDs (eSSDs). While eSSDs typically require 512MB to 1GB of DRAM for every 4TB of storage, sourcing has become difficult as primary suppliers like SK Hynix and Samsung pivot wafer capacity toward high-margin High Bandwidth Memory (HBM) for AI applications.
In a report by JPMorgan, analysts noted the "rationale behind third party private placement: stable DDR4 supply likely for eSSDs and selective electronic device applications." The analysts further observed that SK Hynix is prioritizing its HBM-centric operations and a DDR4 end-of-life plan, which has "led it to consider exploring alternative supply chain sourcing." This structural reallocation of global capacity has forced NAND-only producers to form equity alliances to prevent production bottlenecks in the enterprise storage market.
Sources (13)
Chip Selloff Deepens After Google Touts Memory Breakthrough - BloombergSamsung Launches 990 EVO Plus SSD With Innovative ...Is the memory chip "super cycle" really coming?Scaling the Memory Wall: The Rise and Roadmap of HBM[News] NAND Leaders Bet on Taiwan’s DRAM Maker: Why Kioxia, SanDisk, SK hynix Back Nanya Tech’s $2.5B Deal?(PDF) MEMORY IS THE NEW SILICON GOLD - From Memory Shortages, Price Surges to Technologies in AI EraAsia-Pacific Memory Market Outlook 2025 | PDF | Flash Memory | Solid State DriveHow AI Broke the Memory Market: Inside the 2024–2026 DRAM & NAND Crunch
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