Silicon Motion Launches SM2258 To Support 3D TLC NAND

Premium NAND flash control developer Silicon Motion Technology Corp. (NASDAQ:SIMO) recently launched a turnkey merchant ASIC/firmware SATA 6Gb/s SSD controller solution – SM2258 – that can support 3D TLC NAND of major NAND suppliers.

This solution works on ultra-low power while providing unprecedented data retention and durability. The company believes this will drive the uptake of cost-competitive and high-performance 3D TLC NAND flash-based SSDs by OEMs. Powered by Silicon Motion’s proprietary NANDXtend technology, the SM2258 controller features state-of-the art technologies like “Direct-to-TLC” and SLC Caching algorithms that will optimize TLC NAND performance and ensure data integrity.

Some of the noteworthy features of SM2258 include ultra-high sequential read performance, latest security protocols and the ability to support both commercial and industrial grade conditions. Silicon Motion believes that NAND vendors are currently adopting the advanced 3D TLC NAND to eventually displace HDDs in a wide variety of end-markets and applications as turnkey controller solutions are more appropriate for the latest line of ultrabooks, laptops and tablets.

Silicon Motion established itself as the leading merchant supplier of client SSD controller to module makers, including most market leaders in the U.S., Taiwan and China. Surging demand for SSD controllers from NAND flash partners (primarily attributable to growing sales of DRAM solution) and increasing use of SSD controllers in non-mission critical data center storage and other embedded applications have largely fuelled growth at the company in the past few quarters.

Meanwhile, the company believes that a majority of its client SSD controllers will be used for managing 3D flash next year. Silicon Motion also believes that it is well-equipped to adapt to industry changes, thanks to its strategic collaborations with flash vendors for the development of proprietary controller technology. The company believes that these tie-ups will help it to overcome the existing weakness in 3D NAND with time. Based on these favorable trends, Silicon Motion expects SSD controller sales to gain momentum in the forthcoming quarters which will in turn allow the company to double sales in full-year 2016.

Silicon Motion currently sports a Zacks Rank #1 (Strong Buy). Some other stocks that are worth considering include Amkor Technology, Inc. (NASDAQ:AMKR) , AXT Inc. (NASDAQ:AXTI) and Alpha & Omega Semiconductor, Ltd. (NASDAQ:AOSL) . While Amkor Technology and AXT sport the same Zacks Rank as Silicon Motion, Alpha & Omega Semiconductor holds a Zacks Rank #2 (Buy).