SSD maker OCZ to buy controller company Indilinx

SSD maker OCZ to buy controller company Indilinx

The $32M deal will help OCZ get into the embedded flash market

Solid-state drive (SSD) maker OCZ Technology Group announced this week it has signed an agreement to acquire privately-held Indilinx, a maker of popular NAND flash controllers, for $32 million.

OCZ expects to close the all-stock buyout of Indillinx in the next 30 days.

Based in South Korea, Indilinx sells its line of flash controllers to SSD manufacturers and computer system manufacturers. OCZ has had a long-standing relationship with Indilinx and has used its controllers in its SSDs since December 2008.

Indilinx competes directly against SandForce and Marvell, both in California, and Taiwan's JMicron Technology. Some of the leading SSD manufacturers, such as Samsung Electronics and Intel, make their own controllers.

"I think it's a win-win for both companies as OCZ taps into the engineering and development talent of Indilinx as OCZ is looking to expand its business around SSD for their future," said Michael Yang, an analyst with memory and storage research firm IHS iSuppli. "From a technical perspective as well as from a cost reduction standpoint, it's a plus for OCZ."

Yang said the proposed buyout is an early sign there will be further consolidation in the SSD market, "both vertically, such as in the case of OCZ and Indilinx, and attrition of SSD suppliers.

"SSD will become more enterprise- and performance-driven in the near term and as such, companies with technology in hardware, firmware and software will rise to the top," he said.

OCZ said in a statement that it expects Indilinx's technology will allow it to expand its presence in the embedded, hybrid storage and industrial markets. "OCZ will gain substantial intellectual property from Indilinx, including approximately 20 patents and patent applications related exclusively to the business as part of the transaction," OCZ said.

For example, the acquisition is expected to extend OCZ's capabilities involving advanced controller technology, including Tinkerbell, a high-performance embedded multimedia card controller that replaces SSDs in consumer electronic devices such as smartphones, tablet PCs, GPS units and netbooks.

According to OCZ, Indilinx will continue to supply its line of controller products to other SSD and system manufacturers. The Indilinx controller business, and its 45 employees, will remain intact under the leadership of Bumsoo Kim, the founder and president of Indilinx, and Hyunmo Chung, Indilinx's CTO.

At the same time, OCZ said it plans to continue using controllers from other manufacturers, including long-term partner SandForce. OCZ uses SandForce's controllers in its Vertex 2, Agility 2, RevoDrive, customizable Deneva enterprise drives, as well as in the upcoming Vertex 3 family of SSDs.

Lucas Mearian covers storage, disaster recovery and business continuity, financial services infrastructure and health care IT for Computerworld. Follow Lucas on Twitter at @lucasmearian or subscribe to Lucas's RSS feed . His e-mail address is .

Read more about storage in Computerworld's Storage Topic Center.

Follow Us

Join the ARN newsletter!

Error: Please check your email address.

Tags OCZ Technologymicron technologystorageiSuppliSamsung Electronicsstorage hardwareintel



 IN PICTURES: VeeamON Tour in Sydney and Melbourne (+ 17 photos)

IN PICTURES: VeeamON Tour in Sydney and Melbourne (+ 17 photos)

The VeeamON tour showcased company's upcoming release of the Veeam Availability Suite v9. Veeam product strategist, Rick Vanover led the discussions in Sydney and Melbourne about the upcoming v9 and other Veeam innovations for the new year.​ VeeamON was held on September 23 at the Museum of Sydney, Warrane Theatre, and at Melbourne Museum in Melbourne on September 24.

IN PICTURES: VeeamON Tour in Sydney and Melbourne (+ 17 photos)
 IN PICTURES: Greentree A/NZ Partners Explore Japan (+ 13 PHOTOS)

IN PICTURES: Greentree A/NZ Partners Explore Japan (+ 13 PHOTOS)

As part of a regular strategic planning program for select Greentree A/NZ partners, they enjoyed a week in Japan combining strategic planning sessions with sightseeing. Principals and their partners from Star Business Solutions, Endeavour Solutions, Addax Business Solutions, GT Business Solutions, bizlinkIT and Verde Group joined Greentree chief executive, Peter Dickinson, channel director, Graham Hill, and R&D director, Stephen Sims in Tokyo and took in Hiroshima, Kyoto and Hakone, including travel on the famed bullet train which hit a top speed of 296 KPH.

IN PICTURES: Greentree A/NZ Partners Explore Japan (+ 13 PHOTOS) is a channel management ecosystem that automates all major aspects of the entire sales, marketing and service process, including data tracking, integrated learning, knowledge management and product lifecycle management.

Show Comments