Marvell Technology Group Ltd. (MRVL) achieved a new milestone by developing the world’s first DRAM-less NVMe (Non-Volatile Memory Express) solid state drive (SSD) controllers – 88NV1140 and 88NV1120 – designed for slim tablets, convertibles and Chrome devices.

According to this analog, digital and mixed-signal chipmaker, these controllers are fabbed on a 28-nm process and are only 8x8 mm per package allowing them to build SSDs as small as M.2.2230. Moreover, the controller can be installed on a multiple-chip-package with integrated SRAM, thereby eliminating the need for an external DRAM chip.

Furthermore, the company stated that both the solutions are based on its third-generation NANDEdge error-correction technology which enables silicon to work with triple-level cell (:TLC), 3D NAND, low-density parity check (:LDPC) technologies.

In addition to passing in-house SSD validation, Marvell’s new leading-edge controllers have passed third-party operating system and platform compatibility testing.

The storage market is seeing a steady increase in demand, given fast-growing stored data volume, especially the exponential growth in unstructured data. NAND (non-volatile storage technology) demand is expected to remain very strong this year as well. SSD demand will also increase and could even surpass manufacturing capacity, leading to periodic shortage and higher pricing in the near term.

Marvell is benefiting from the growing demand for SSD products. This is evident from the company’s last-reported financial results for the third quarter of fiscal 2015 wherein revenues from the storage end market grew year over year as well as sequentially. Storage revenues were positively impacted by strong demand from SSD customers and share gains in the HDD segment.

As per technology research firm Gartner, the total SSD market is poised to grow significantly in the years to come. The firm estimates that total SSD revenue in 2013 jumped 53.1% year over year to $10.99 billion.

With these launches, we expect Marvell to strengthen its market position against competitors like Intel Corp. (INTC) and SanDisk Corp. (SNDK).

Moreover, Marvell has been constantly upgrading the memory technologies, spanning DRAM and NAND Flash memory solutions, which are being widely used in the latest mobile computing devices as well as in consumer, networking and embedded products.

However, competition in the semiconductor market from major players remains a headwind. Sluggish macroeconomic conditions, a shrinking PC market and higher material costs are the other challenges in the near term.

Currently, Marvell carries a Zacks Rank #3 (Hold). A better-ranked stock in the semiconductor industry worth considering is TriQuint Semiconductor, Inc. (TQNT) with a Zacks Rank #2 (Buy).

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