Solid state drives (SSDs) have become a popular storage solution in recent years due to their faster speeds and improved reliability compared to traditional hard disk drives (HDDs). However, as storage capacities increase, so too does the price of SSDs. This is especially apparent with higher capacity models like 2TB SSDs which carry premium price tags. But what exactly makes these drives so much more expensive than lower capacity SSDs or even HDDs of the same size?
SSD Cost Factors
There are several key reasons why 2TB and other large capacity SSDs come with higher price points:
More NAND Flash Components
At their core, SSDs are composed of NAND flash memory chips. To reach 2TB or more in capacity requires packing hundreds or even thousands of these chips onto the SSD’s circuit board. The more NAND flash is required, the higher the overall manufacturing costs become. Even small increases in NAND pricing from chip suppliers over time can have an amplified impact on high density SSD pricing.
Advanced NAND Flash
In order to manufacture SSDs with capacities in the multi-terabyte range, NAND flash memory with higher densities is required. For example, while lower capacity SSDs may use 32-layer or 64-layer 3D NAND, high capacity 2TB+ models often use 96 layers or more. Developing these advanced 3D NAND technologies like BiCS3 used in Western Digital’s new 2TB SSDs requires extensive R&D and investment which contributes to their higher pricing versus lower density SSDs using older generation NAND.
Controller
The SSD controller manages all read and write operations to the NAND flash memory while also providing critical functions like encryption, error correction, wear leveling, and more. Controllers capable of effectively handling NAND flash at higher densities requires greater sophistication and manufacturing costs. Just as advanced 3D NAND adds expense, so too do the controllers that can properly leverage all that storage capacity across a high speed PCIe or SATA interface.
Additional Components
In addition to flash memory and a controller, SSDs also require DRAM, capacitors, voltage regulators, and other components to function. The greater the SSD’s storage density, the larger these supporting components must be as well. For example, a 2TB SSD may use 2GB or more of DRAM compared to 1GB or less for a 512GB SSD. This adds further to the overall hardware costs.
Market Forces
Beyond the base hardware costs, broader economic factors also influence 2TB SSD pricing including:
Low Production Volumes
Compared to lower capacity SSDs which ship millions of units per year, high capacity 2TB+ SSDs have much lower production volumes measured in the hundreds of thousands. The costs to develop and manufacture these drives cannot be distributed across nearly as many units. With fewer sales to recoup expenses, prices have to be set higher.
Premium Branding
For major SSD brands like Samsung, Western Digital and others, releasing a new cutting edge high capacity drive also serves as a prestige product to enhance their brand. These companies will often price the top models higher because the performance and capacity plays into the premium brand image they want to project to consumers.
Price Segmentation
Keeping the most expensive SSDs like 2TB models at a higher price point helps storage vendors maximize their profits. Price segmentation allows them to capture premium dollars from buyers focused purely on large capacities while still being able to sell lower cost SSDs with their cheaper NAND flash and controllers to the more value driven segments of the market.
NAND Flash Shortages
In recent years, the rise of smartphones, tablets, SSDs and other devices has created huge demand for NAND flash. However, suppliers have struggled to increase production fast enough leading to persistent NAND shortages and inflated pricing. These spikes in NAND costs quickly translate to more expensive SSDs, especially on premium high density models.
Manufacturing investments
To manufacture 2TB SSDs requires major capital investments by companies like Samsung, SK Hynix, Western Digital, and others to construct new state of the art fabrication plants. Samsung alone spent around $20 billion building a new facility completed in 2017 to produce memory including their 3D V-NAND utilized across SSD product lines. These massive fixed costs require years to recoup and contribute to keeping consumer SSD pricing at relatively high levels.
Conclusion
In the end, 2TB SSDs command premium pricing due to the more advanced memory and controller technology required to reach such lofty capacities combined with lower production volumes and strategic branding/pricing decisions for these flagship storage products. Until manufacturing costs come down significantly or consumer capacity needs grow substantially, expect the latest high capacity SSDs to maintain their price premiums compared to lower density models with more mass market appeal.
| SSD Capacity | Average Price per GB (USD) |
|---|---|
| 128GB | $0.20 |
| 256GB | $0.18 |
| 512GB | $0.16 |
| 1TB | $0.15 |
| 2TB | $0.25 |
As this table shows, at around $0.25 per GB, the cost per gigabyte of 2TB SSDs is significantly higher than lower capacity models. This demonstrates the large price premium commanded by top of the line high density SSD storage solutions.
Outlook for the Future
There are some signs that extremely high capacity SSD pricing could come down over time:
Increased Adoption
As more consumers buy laptops, desktops, and servers equipped with SSDs by default, average storage capacities are steadily rising. If 2TB becomes more of the new normal, manufacturing volumes could increase and lower costs.
Improvements in 3D NAND Scaling
SSD makers continue to iterate on 3D NAND technology to allow stacking more layers. Samsung is already at over 100 layers and poised to push densities higher. If they can reliably scale up while controlling defects, costs could fall significantly.
New Technologies
Alternative non-NAND memory technologies like Intel and Micron’s 3D XPoint used in Optane SSDs offer another potential path to lower cost solid state storage if capacities grow while prices decline. However, Optane is not currently offered in multi-TB options.
China Competition
Chinese memory manufacturers like Yangtze Memory Technologies are investing heavily in an effort to compete with the likes of Samsung, SK Hynix, and Micron. More players manufacturing flash memory could improve supply and reduce some pricing pressures in the coming years.
While the current economic realities make 2TB SSDs more costly than lower capacity options, over time, continued technological progress could make massive solid state storage mainstream and affordable. But for now, core infrastructure challenges around scaling advanced 3D NAND will keep these top tier drives at a pricing premium.