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Article 15. SSD Drives – 28th April 2010

Solid-state drives (SSD) are the hottest hardware products around at present and have been for the last 2 years. They good  uptake within the consumer PC, notebook and netbook markets which is largely due to a response to a drop in pricing in 2007/ 2008.

The manufacturers of NAND flash chips, which are the components used to build SSDs, took a hit for more than a year starting in 2007. Pricing for NAND flash dropped as much as 60% year over each year in 2007 and 2008.

"There was a definite over supply of NAND chips. The problem was that nobody  was making any money in NAND or the memory industry at that point.

After the first quarter of 2009, however, SSD pricing started to level off and even increased as the world economy forced NAND flash manufacturers to stop investing in any new equipment as demand outstripped supply.

Surging NAND flash prices in 2009 hurt what was a booming SSD market. The price of a typical flash memory chip rose to $4.10 in the second quarter of last year, which represented a $1.80, or 127%, increase from the final quarter of 2008.

Prices then flat lined until 2010, when NAND flash chip fabricators were able to re-invest their profits and ramp up production and begin sell higher-density products.