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China’s SSD Offensive: Capturing a Third of Global Market Share

Copyright & Fact Checker 24 October 2024

Chinese brands have made a significant incursion into the global solid-state drive (SSD) market, securing 34% of all SSD units sold in 2023-2024 Backed by aggressive domestic demand and strategic government support, China’s rise in this sector sends a clear signal to Western competitors.

Chinese Brands Dominate Retail SSD Market

The surge of Chinese vendors in the SSD space has shaken the retail market’s landscape. According to TrendForce, five Chinese manufacturers are now ranked among the top 10 SSD suppliers, gaining market share with affordable modules built using third-party flash memory.

While some of these brands remain unfamiliar to the global audience—such as Kimtigo and Biwin—others, including Teclast, Colorful, and Lexar, are gaining prominence. Notably, Lexar, originally a U.S. brand, was sold to China’s Longsys in 2017, adding a powerful global brand to the Chinese tech arsenal.

China’s Key Players Solidify Market Position

The strategic growth of Chinese vendors shows no signs of slowing:

  • Kimtigo captured a 9% share, earning it fourth place in the global rankings.
  • Biwin, newly debuting in the top 10, soared to fifth place with a 7% share.
  • Colorful, known primarily for graphics cards, leveraged its new in-house SSD controller to cut costs and secure a 5% share.
  • Lexar holds an 11% share, primarily fueled by success in the domestic Chinese market.

Despite challenges, China’s success isn’t accidental. Government initiatives and subsidies have empowered companies like YMTC, a major NAND flash producer, to modernize operations even under U.S. sanctions. Chinese brands have also transitioned quickly to PCIe 5 technology—an area where many Western competitors have yet to catch up.

The Power of Domestic Patriotism

Chinese consumers increasingly favor local brands, a trend that experts refer to as “voting with their wallets.” This patriotic buying behavior reinforces domestic brands’ ability to compete on the global stage and makes it harder for Western manufacturers to maintain dominance in China.

Even with this surge, however, not all Chinese vendors are thriving. Netac, which previously held a 6% share, has fallen out of the top 10, demonstrating that competition is fierce even within China’s borders.

Western Giants Hold Ground

Despite the rise of Chinese vendors, Kingston (USA) maintains its global leadership with a commanding 34% share. Meanwhile, Taiwanese brands such as Adata, Gigabyte, and Transcend also remain influential, collectively holding crucial positions in the market.

However, even these established brands aren’t immune to market pressures. By the end of 2023-2024, the five largest SSD suppliers controlled 72% of global shipments, up from 59% in 2022. These giants leverage their scale to negotiate favorable deals with NAND flash manufacturers such as Samsung, SK Hynix, and Micron—a practice that threatens to marginalize smaller players.

Market Drivers and the Future of SSDs

Global SSD shipments reached 118 million units in 2023-2024, marking a 3.7% increase from the previous year. Several factors are driving this growth:

  • PC Upgrades: Many consumers are replacing aging computers purchased during the pandemic, contributing to demand for SSDs.
  • Bigger Storage Needs: With interactive entertainment and digital content creation on the rise, consumers are migrating from smaller SSDs (256GB or 512GB) to larger models (2TB or more).
  • Artificial Shortages: NAND flash suppliers intentionally reduced production to create scarcity and inflate prices. This strategy forced consumers to absorb higher SSD costs, which further boosted shipment volumes as some rushed to buy drives before prices spiked further.

A Warning to the West

China’s growing dominance in the SSD sector sends a strong message to global competitors. Through state-backed innovation, strategic acquisitions, and the unwavering support of domestic consumers, Chinese brands are closing the technological gap and consolidating market share.

As these brands expand their reach, Western companies like Kingston and Samsung will need to adapt quickly or risk being overtaken. For now, the SSD market remains a battleground where innovation, scale, and geopolitics intersect—and China is determined to come out on top.