FADU, a global number two corporation in solid-state drive (SSD) module field, announced on the 14th that it has signed a memorandum of understanding (MOU) for a strategic alliance and comprehensive cooperation with Taiwan's ADATA.
This collaboration is the first major joint effort in the customer-tailored solution "Flex SSD™" business model that FADU has newly launched this year.
The signing ceremony of the memorandum of understanding took place on the 2nd in Taipei, Taiwan, with Namhyeon Kim, CEO and Chief Technology Officer (CTO) of FADU, and Simon Chen, chairman of ADATA, in attendance.
The "Flex SSD" that FADU is promoting this year is a business model that allows customers to freely choose the elements they need for manufacturing and mass production. It is characterized by providing a flexible collaboration model from finished goods supply to joint development, depending on the client's capabilities and requirements.
FADU possesses differentiated core technologies throughout the entire process of SSD development and production, including SSD controller design, firmware development, and manufacturing technology support, and actively supports clients in developing and mass-producing their products under their own brand promptly and reliably.
ADATA is a global number two corporation in the industrial and consumer SSD module field, equipped with strong production infrastructure and a global distribution network. In particular, ADATA plans to strengthen its competitiveness in the enterprise SSD market as a result of this cooperation with FADU, beyond the personal SSD sector.
FADU provides overall technical support and solutions to ensure that ADATA can expand its dominant market presence in the enterprise SSD market. Through this, it is expected to attract customers for mass production using its platform and establish a stable customer base.
The collaboration between the two corporations will be implemented gradually. Initially, it will support the development of enterprise SSD products based on FADU's technology and manufacturing capabilities. This will allow ADATA to quickly establish a product line and accelerate its market entry speed. Once ADATA enters the stage of direct mass production, FADU will assist in building stable production capabilities by transferring mass production technology and know-how.
In the final stage, it plans to support strengthening ADATA's own technological capabilities by providing technical advice and joint development based on FADU's controller design technology and SSD development know-how.
Through this, the strategy is to promote the expansion of the existing controller business and create a catalyst for revenue enhancement. As the business focus shifts from SSD modules to controllers, it is projected to reduce the burden of working capital and secure stable partners in the long term.
The two corporations plan to gradually expand their collaboration scope, starting with the fifth-generation (Gen5) enterprise SSD based on triple-level cell (TLC), which is the current mainstream product in the market, and moving on to quad-level cell (QLC) based SSDs and next-generation Gen6 products, in order to secure market leadership and technological superiority.
Taekyun Kim, Chief Business Development Officer (CBO) of FADU, noted, "This memorandum of understanding is part of the strategic relationship building aimed at not only short-term market expansion but also securing a stable customer base in the medium to long term" and emphasized, "We will enhance our clients' competitiveness through the Flex SSD solution and create a win-win ecosystem for both companies to achieve sustainable growth together."