TrendForce Lifts NAND Outlook as Hyperscaler Enterprise SSD Demand Nearly Doubles

US cloud service providers have upgraded their enterprise SSD demand forecasts over the past two weeks, according to TrendForce research published September 21, mainly because major cloud service providers are speeding up deployments and expanding enterprise SSD use across more applications. Notably, the increase is not confined to high-performance TLC products; QLC products, known for superior cost efficiency and capacity, have become a significant growth catalyst. Recent procurement momentum suggests total enterprise SSD orders in the fourth quarter could surpass the already elevated levels seen in 3Q26, maintaining a strong upward trajectory. That has given NAND flash suppliers greater control over capacity allocation and pricing in the enterprise segment.

Demand drivers have broadened well past the initial focus on large language model training. As agentic AI systems become increasingly prevalent, demand for massive volumes of real-time data retrieval and caching is growing rapidly, and QLC storage is seeing broader adoption in vector databases, where high capacity and cost efficiency suit large volumes of unstructured data. In China, AI architectures led by DeepSeek are promoting the use of high-capacity QLC enterprise SSDs for KV cache offloading. By selectively offloading cached data from memory to high-speed, high-capacity QLC drives, these architectures improve model inference efficiency at lower cost, which could drive broader QLC adoption in the Chinese market.

Server DRAM is tightening alongside NAND. Micron has demonstrated a 512GB DDR5 RDIMM running on multiple server platforms, which it calls the world's first module at that capacity, and says AMD and Intel are both validating it for their next-generation server platforms. The module is rated for speeds up to 9,200 MT/s, and in a 24-slot dual-socket server it delivers 12TB of memory. Volume production is guided to the second half of 2027, which leaves hyperscalers competing for current-generation high-density modules in the interim while suppliers prioritise HBM and server memory over consumer parts.

On the supply side, China's CXMT said its fifth-generation DRAM platform, the G5 Platform, has entered mass production along with two LPDDR5X products built on the new process. At its heart is a self-aligned quadruple patterning technique that shrinks the memory array active-area half-pitch to 11.95nm, with die-per-wafer at least 50% higher than the previous generation and an array-capacitor aspect ratio of 45:1. The two chips, in 496-ball and 245-ball packages, carry 24Gb per die, a 50% increase over comparable previous-generation products, and are aimed at smartphones and portable devices. Reuters separately reported that CXMT is preparing to enter the NAND flash market with an R&D line, putting it in competition with Samsung, SK hynix and YMTC.