Phison Launches Proprietary AI Service Solutions Expanding NAND Storages in the AI Applications

Phison Electronics (8299 TT), a global leader in NAND controllers and storage solutions, announced today the expansion of its IMAGIN+ service to include AI computational models and AI services solutions. Phison’s aiDAPTIV+ utilizes Phison's innovative integration of SSDs into the AI computing framework and expands NAND storage solutions in the AI application market.

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Phison Launched Proprietary AI Service Solutions Expanding NAND Storages in the AI Applications (Image: Phison)

Phison has been a global leader deeply engaged in NAND controller innovations for more than 23 years. In recent years, the company has developed and integrated AI and machine learning technologies into NAND controllers and algorithms in order to enhance the computational performance and reliability of the company’s NAND storage solutions.

Additionally, Phison has established a data science team, developed and deployed relevant AI technologies, and created a world-class validation laboratory. These efforts have accelerated the adoption of Phison's storage solutions in various applications, including PCs, mobile phones, automobiles, gaming platforms, enterprise data center & edge applications, supply chain logistics, and more.

With the recent rise of large-scale generative AI models such as ChatGPT, the possibilities for artificial intelligence to assist both businesses and individuals in the future are significant. The rapid growth of AI models has also led to a significant increase in the hardware infrastructure cost associated with providing AI services.

The primary reason for increased costs is that current AI models run primarily on GPUs and DRAM. However, the growth rate of future AI models will far exceed the capacity that GPUs and DRAM can provide. According to a recent research report by Microsoft, the growth rate of AI models will soon be 200 times that of DRAM in GPU cards. In other words, the current hardware architecture for AI computing may already be insufficient to meet the future demands of AI applications.

To improve overall operational performance and efficiencies for AI hardware architecture, aiDAPTIV+ integrates SSDs into the AI computing framework. Based on the application timeline, aiDAPTIV+ structurally divides large-scale AI models and collaboratively runs the model parameters with SSD offload support. This approach maximizes the executable AI models within the limited GPU and DRAM resources, effectively reducing the hardware infrastructure cost required to provide AI services.

The initial application scenario for this technology is the world's first mass-produced Artificial Intelligence-Automated Optical Inspection (aiDAPTIV+ AOI) system integrated with SSD cooperative computing. Phison’s aiDAPTIV+ AOI services accelerate the transition of Surface Mount Technology (SMT) factories into Industry 4.0 and improve detection accuracy while eliminating delays and costs associated with instability caused by human inspection.

Phison’s aiDAPTIV+ AOI service is applicable to various SMT product lines, including SSDs, graphics cards, DRAM, motherboards, and more. Approximately 10 SMT partners and customers have already successfully adopted the Phison aiDAPTIV+ AOI service, improving the accuracy of their existing AOI systems and reducing the escape rate caused by human errors to below 10 defective parts per million (DPPM), significantly increasing throughput rates to more than 99%.

Initial users are enthusiastic about the results they are seeing upon deployment.

“ADLINK and Phison have had many years of cooperation and synergy in the industrial storage application field, and recently, we have joined forces to expand into the AI application market,” said Ethan Chen, General Manager of Edge Computing Platforms BU at ADLINK Technology. “Phison has integrated AI mechanisms into the design of NAND controllers, enhancing product performance and reliability. Coupled with ADLINK's next-generation NVIDIA Jetson Orin platform, ADLINK and Phison will be able to provide customers in the industrial and AI fields with more complete and reliable solutions. Currently, ADLINK's edge AI inference platforms, DLAP-211-Orin Nano and DLAP-211-Orin NX, have become the first certified edge computing devices for Phison's self-developed aiDAPTIV+ AOI automatic optical inspection system, and we will continue to expand our collaboration in the future.”

“Phison’s aiDAPTIV+ architecture integrates SSD technology in an innovative approach. This new structure can significantly reduce the cost of hardware deployment in specific AI applications. The aiDAPTIV+ AOI platform launched by Phison is a concrete result of this new architecture,” said Benny Lan, deputy general manager of Giga Computing. “Giga Computing is pleased to be the first partner with product certification for the aiDAPTIV+ AOI platform, which has been successfully deployed in many customers’ SMT production lines using GIGABYTE’s customized workstations and AMD GPUs, which were paired with aiDAPTIV+ computing architecture. This system improved the efficiency in detection of defects and greatly reduced possible human errors. Giga Computing and Phison will continue to expand cooperation in the field of AI applications.”

Dr. Wei Lin, Head of Phison's AI R&D team and Assistant Professor at the College of Artificial Intelligence, National Yang Ming Chiao Tung University, said Phison's core expertise and competitive advantage is in the development of NAND controllers. Expanding the connection between NAND storage and AI applications has been Phison's focus in recent years. Phison's AI R&D team has successfully integrated SSDs into a newly developed AI computing framework, which not only effectively reduces hardware infrastructure costs for AI servers but also enables the application of this aiDAPTIV+ computing architecture in various AI application scenarios.

The globally pioneering SSD-Boosted aiDAPTIV+ AOI optical inspection system announced today demonstrates Phison's successful integration of SSDs and the creation of a new AI computing framework. Moving forward, Phison will continue to expand the development of aiDAPTIV+ technology and collaborate with partners from various fields to further foster the application of NAND storage in the AI domain. Through the Phison aiDAPTIV+ AOI, Phison aims to assist SMT partners and customers in improving production efficiency and reducing costs.

Phison will invite global ecosystem partners and customers to visit their cutting-edge NAND controllers at the Flash Memory Summit in the United States, which will take place from August 8th to August 10th in Pacific Time. The showcased solutions will include the world's first PCIe 4.0 DRAM-Less client SSD controller PS5027-E27T that supports speeds of up to 3600MT/s for 3D NAND, the world's first PCIe 5.0 DRAM-Less client SSD controller PS5031-E31T, as well as the live demo of Phison's AI service solution, aiDAPTIVE+ AOI. Phison will engage in discussions with global partners and customers to further expand the market for NAND storage applications.

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[PHISON’s Quick Facts]

• Over 22 years experiences in NAND controller IC design and module integration.
• Over 3,800 employees globally, and more than 70% are engineers
• Nearly 2,000 memory-related patents globally.
• Target long-term revenue of NT$100 billion through the 5+5 growth strategy
• The global market share of SSD controller exceeds 20%
• NT$60.256B sales revenue in 2022.
• Confident that our unique business model can produce consistently strong cashflows and profits over the long-term amidst NAND memory market cycles.
• Strongly maintain long-term partnerships with our global NAND flash supply sources and with our downstream module customers.

[About PHISON]

Phison Electronics Corp. (TPEX:8299) is a global leader in NAND Flash controller IC and storage solutions. We provide a variety of services from controller design, system integration, IP licensing to total turnkey solutions, covering applications across SSD (PCIe/SATA/PATA), eMMC, UFS, SD and USB interfaces, reaching out to consumer, industrial and enterprise markets. As an active member of industry associations, Phison is on the Board of Directors for SDA, ONFI, UFSA and a contributor for JEDEC, PCI-SIG, MIPI, NVMe and IEEE-SA.

To know more about Phison, please visit Phison Website or Phison Q&A for details. Read more on our blog: www.phisonblog.com

[Forward-looking Statements]

Information included in this press release that are not historical in nature are "forward-looking statements". Phison cautions readers that forward-looking statements are based on Phison’s reasonable knowledge and current expectations, and are subject to various risks and uncertainties. Actual results may differ materially from those contained in such forward-looking statements for a variety of reasons including without limitation, risks associated with demand and supply change, manufacturing and supply capacity, design-win, time to market, market competition, industrial cyclicality, customer’s financial condition, exchange rate fluctuation, legal actions, amendments of the laws and regulations, global economy change, natural disasters, and other unexpected events which may disrupt Phison’s business and operations. Accordingly, readers should not place reliance on any forward-looking statements. Except as required by law, Phison undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.

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