AI storage demand lifts South Korea's FADU with record contracts

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SEOUL, January 22 (AJP) - Data center semiconductor firm FADU said on Thursday it has secured a 47 billion won ($35 million) order for finished solid-state drive (SSD) products from Taiwan-based Macnica Galaxy, marking the largest single contract in the company’s history.

In a regulatory filing, FADU said the deal revises a previously disclosed 21.5 billion won contract announced on Nov. 5, reflecting a larger supply volume and higher SSD prices.

The company said the order exceeds its total annual revenue of 43.5 billion won and underscores rising demand for its data center storage products.

Under the contract terms, half of the contract value will be paid in March, with the remaining amount expected to be recognized as revenue in the second half of this year.

Earlier this month, FADU disclosed it had signed a separate 20.3 billion won supply contract for enterprise SSD controllers with an overseas NAND flash memory manufacturer, also its largest single controller supply deal to date.

Together, the two contracts total 67.3 billion won, close to FADU’s cumulative revenue of 68.5 billion won recorded through the third quarter of last year. The company said it expects to return to profitability from the first quarter, supported by a growing pipeline of large orders.

FADU added that it secured five contracts worth 10 billion won or more in the second half of last year.

Chief Executive Lee Ji-hyo said performance bottlenecks in artificial intelligence data centers are increasingly concentrated in storage and SSDs.

“Our technology and customer trust are starting to deliver results,” Lee said.

* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
Lee Hyo-jung 기자 hyo@ajunews.com

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