[Special Stock] Samhwa Electric Develops World's First Core Material to Capture 55 Trillion SSD Market... Supplies to Samsung

[Asia Economy Reporter Hyungsoo Park] Samhwa Electric, a capacitor specialist company, is showing strong performance. It appears that the recent news of mass production supply of the ‘S-CAP’, jointly developed with Samsung Electronics, for Samsung Electronics’ next-generation new SSD product has influenced the stock price.

As of 11:36 AM on the 18th, Samhwa Electric is trading at 34,950 KRW, up 7.54% from the previous day.

SSD is a large-capacity storage device that uses NAND flash semiconductors to store data. Due to rapid changes in data storage devices, global SSD demand in the data center server market of IT companies such as Facebook, Amazon, and Google, which require large-scale servers, is growing beyond HDD, and the market is expected to expand in the future. Market research firm IDC forecasts that the global SSD market size will grow at an average annual rate of 18% until 2024, reaching $50.1 billion (approximately 55 trillion KRW).

The recently announced new SSD product by Samsung Electronics is expected to improve power efficiency compared to existing models, reducing operating costs for data center companies that require large amounts of power and contributing to environmental efforts such as carbon reduction. If all hard disk drives (HDDs) shipped worldwide last year for servers were replaced with SSDs, the amount of power saved in one year would be greater than the residential power consumption of a large city during one summer month. According to market research firm Omdia, Samsung Electronics held a dominant position in the enterprise SSD market as of last year.

S-CAP is applied and released in Samsung Electronics’ next-generation SSD models and is also known to be involved in other models. The SSD-dedicated S-CAP uses core materials and external components developed for the first time in the world by applying the original technology secured by Samhwa Electric, satisfying all reliability characteristics. All technologies have completed patent applications.

A Samhwa Electric official stated, "Based on the applied applied technology in product development, we are developing the next model, the new S-CAP2," and added, "We will quickly proceed with product development that meets next-generation trends."

Samhwa Electric is reportedly considering additional expansion of production lines to respond to increasing demand.