OCZ goes all-in with SSDs, acquires Indilinx

By on March 14, 2011, 10:13 PM
OCZ announced today they will acquire Indilinx, a South Korea-based manufacturer that specializes in flash memory controller hardware and software for solid state drives. Most notably, Indilinx produced the "Barefoot" controller used on the first generation OCZ Vertex solid state drive, as well as in other OCZ products and from other manufacturers like the Crucial M225, G.Skill Falcon and the SuperTalent UltraDrive ME SSD.

Earlier this year OCZ revealed they were exiting the memory market due to weaking global demand, instead focusing on the consumer and enterprise SSD business. The company is also keeping alive their power supply business, which is derived from the acquisition of PC Power and Cooling made in 2007.

Although OCZ's latest Vertex 3 drives are based on competing SandForce controllers, the company says they will continue to rely on third-party partners for some of their products. Last year Indilinx was expected to release a new SATA 6Gbps controller called "Jet Stream", but delays have kept pushing the chip out of the market.

Meanwhile, OCZ points out they are very interested in gaining substantial IP from Indilinx including an advanced high performance eMMC 4.4 x controller. eMMC is an embedded storage solution with an MMC interface, flash memory and controller, all in a small BGA package. This type of technology is meant to simplify mass storage designs for portable consumer electronics products such as smartphones, tablet PCs, GPS units, and netbooks.

Pending regulatory approval, OCZ will acquire Indilinx for approximately $32 million of OCZ common stock. "This transaction is an important step in OCZ's strategy and significantly enhances our ability to capitalize on the worldwide demand for Solid State Drives," said Ryan Petersen, CEO of OCZ Technology Group. "This combination brings together two organizations that are committed to advancing solid state drive design, and provides a unique opportunity for OCZ to increase both customer and shareholder value as well as expand our reach into embedded markets."

User Comments: 6

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mosu said:

Consolidation is the word. I hope they will continue with their memory business with prices going up now.

Mizzou Mizzou said:

Will be interestig to see how this works out, would certainly seem to make sense for OCZ given their focus on the SSD market.

slamscaper slamscaper said:

OCZ's hardware is among the best in the business. However, they are notorious for employing dodgy rebate companies. I have been stiffed at least two times on MIR's for OCZ's products (Once on a PSU and another with a DIMM kit). They are the only company that I've ever had rebate issues with. This is no isolated incident either, as I've heard countless complaints from other end-users as well that were fraudulently denied their rebates.

Considering their recent success in the SSD market, I hope they start taking customer support a bit more seriously. C'mon OCZ... Surely you're making enough money to ditch the rebate fraud now...

Guest said:

RAM prices have continued to drop and will for the foreseeable future. what support do you have to say that prices have risen?

Mizzou Mizzou said:

mosu may be referring to the situation in Japan as a result of the earthquake, this from fudzilla.

[Quote]iSuppli believes the aftermath of the quake will be felt for months, particularly in NAND and DRAM markets. Although there were few reports of actual damage to production facilities, iSuppli believes the disruption caused by infrastructural damage will result in short supply and big price hikes. Even a two-week disruption to shipment schedules would continue to impact prices until Q3.

KG363 KG363 said:

$32 million? That's nothing

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