Seagate and SK Hynix will form a joint venture dedicated to developing SSDs for enterprise servers and data centers, according to Trendforce.
The joint venture will combine Seagate's expertise in hard disk drives with SK Hynix' complete embedded flash and SSD solutions to create a new player in the enterprise SSD market, which is currently dominated by Samsung and Intel.
Western Digital earlier in 2016 completed its acquisition of SanDisk making the pair the first camp consolidating their respective areas of expertise, Western Digital's in HDD and SanDisk in SSD. Seagate and SK Hynix are expected to follow suit by forming a joint venture.
SK Hynix previously acquired California-based Link_A_Media Devices (LAMD), a developer of memory-chip controllers, which has already improved its competitiveness in the SSD field by releasing products equipped with its in-house developed controller chips. SK Hynix plans to have its controller design team consolidated into the new company, while Seagate will transfer part of its technical team to the entity.