Intel has teamed with disk-drive specialist Hitachi Global Storage Technologies (Hitachi GST) to develop solid-state memory drives for servers, workstations and storage systems.

Intel's NAND flash memory will be used in the SSDs which will be based on the Serial Attached SCSI (SAS) and Fibre Channel bus interfaces, with the first products expected to be available in early 2010.

“The new solid-state drives for the enterprise include a number of architectural breakthroughs and improve performance and energy usage models that will change enterprise computing,” said Randy Wilhelm, v-p and general manager, Intel NAND solutions group.

Hard-disk-drive vendors assert that more-than-50-year-old rotating storage will remain relevant for many years to come. Solid-state-drive suppliers scoff at these claims, calling hard-disk technology a has-been. Which camp is right?

Last week, IM Flash Technologies, Intel's NAND flash joint venture with Micron Technology, has cranked up the pressure on NAND flash rivals Samsung Electronics, Toshiba and Hynix Semiconductor, by moving to a new generation of process technology much earlier than expected.

IM Flash says it has begun volume production of NAND flash on a 34nm process at the company's fab at Lehi in Utah. The process delivers a 32Gbit die measuring 172mm² which fits into a TSOP.

NAND flash suppliers are fighting for the little, if any, growth the flash segment may produce this year on falling ASPs (average selling prices), a slowing economy, and intense competition.

“The flash industry is abuzz with talk about solid-state drives (SSDs) and other emerging applications that could drive new NAND demand,” said Nam Hyung Kim, chief analyst and director at marketwatcher iSuppli.

“However, none of these applications is expected to change the momentum of the NAND business anytime soon. With the gloomy economic outlook, excess inventory, slow orders, and weak consumer spending, the NAND market will remain under pressure for the foreseeable future. With its extensive use in consumer-oriented products like MP3 players and digital still cameras, NAND is highly susceptible to changes in macroeconomic conditions,” said Hyung Kim