Turning on Filevault irrecoverably hangs even with clean OS install

It's a 13" MacBook Air 5,2 from 2012 with 128GB storage.
When I turn on Filevault, it runs for about an hour before the estimated time remaining goes from 1-2 hours to "estimating time remaining" and it beach balls. I've let it sit for up to 24 hours before and nothing happens. I have to force it to shut down, then when it starts up I get the white screen with a question mark folder. To recover from this I have to boot from a USB drive and wipe the disk.
I've tried this 3 times, once with a completely new install of Mavericks.
My suspicion is that the SSD is bad, but could it be a different hardware issue?

Hello, cr3ateausername. 
Thank you for visiting Apple Support Communities. 
I am not sure if you are experiencing this issue, but you may find this information helpful. 
MacBook Air Flash Storage Drive Replacement Program
Cheers,
Jason H.

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