Seagate: Acquisition of Samsung's HDD Unit Will Help to Develop SSD Business

Seagate Hopes to Boost SSD Business As a Result of Transaction with Samsung

by Anton Shilov
04/19/2011 | 11:06 PM

Seagate Technology, one of the largest maker of hard disk drives (HDDs) in the world, said that its plan to acquire hard disk business of Samsung would help it to develop its solid-state drive (SSD) business in the most efficient way.

 

"Through the mutual supply agreements that are part of our strategic relationship with Samsung, Seagate secures an important source of a leading edge NAND flash supply, as well as early visibility into the development of next-generation NAND technologies. This will be very valuable to Seagate as we continue to execute on our strategy of developing SSD and solid-state hybrid product offerings," said Steve Luczo, the head of Seagate, during a recent conference call with financial analysts.

Samsung is the world's largest maker of NAND flash memory and collaboration between it and Samsung will indisputably boost abilities of the latter to create leading-edge SSDs. A big question is how interested is Seagate in its solid-state business. At present SSDs only represent a fraction of Seagate's revenues and the company is significantly less active with development of its NAND flash-based storage offerings than the companies, which traditionally offered premium memory modules.

Seagate admits that collaboration with Samsung will only materialize in several quarters from now when the company launches its third generation of solid-state drives.