NAND flash device controller supplier Phison Electronics has disclosed plans to set up a subsidiary in Hefei in China's Anhui Province for a total of NT$569 million (US$18 million), according to the company.

The subsidiary will be engaged in the R&D of solid-state drive (SSD) technology, Phison noted.

Demand for SSDs in PCs is expected to boom starting 2015, said Phison, adding that penetration of SSDs in notebooks will rise substantially. Demand for SSDs for use in servers, data centers and industrial applications is also set to grow robustly in 2015, Phison indicated.

Also acknowledging China's potential demand for SSDs, Phison decided to establish the China-based R&D subsidiary engaged in research and development related to SSD products, the company said.

Phison chairman Khein-Seng Pua has been quoted as saying that the company is looking to expand its SSD operation in 2015. Phison does not rule out acquiring other companies, whose products can complement its SSD product line, Pua said.