Samsung Electronics has agreed to supply
Google with its advanced three-dimensional NAND flash (3D NAND) solid
state drives (SSD).
This deal is considered another huge boost
for Samsung to go ahead of its chief overseas rivals in the race for
development of 3D NAND technology, said officials.
"The agreement
calls for Samsung to supply 3D NAND SSD products for Google
datacenters. Samsung is in discussions with Google to end some minor
differences such as guaranteed shipments and pricing," an executive from
a Samsung Electronics partner company told The Korea Times, Tuesday.
The exact value of the deal is unknown, but the executive said the worth is "sizeable."
A
Samsung Electronics spokesman declined to comment on the agreement.
Google representatives were not immediately available for comment
either.
The deal comes a few days after its chief U.S.-based
memory chip rival Micron Technology teamed up with Intel for their new
3D NAND technology.
Samsung's factory in Xian, China ― the main
location to fabricate 3D NAND chips ― will increase its annual shipments
of 3D NAND chips to 960,000 wafers this year, from last year's
estimated 480,000, according to research firms.
From a technology
point of view, 3D NAND is a type of flash memory that stacks memory die
on top of each other within a single package using specialized
interconnectors. The vertical stacking allows for a significantly higher
density of memory cells and improves performance and reliability.
The
3D NAND is a breakthrough in overcoming the density limit currently
facing the planar (2D) NAND architecture and floating gates used in
conventional flash memory, as well as yielding speed and endurance
improvements.
3D NAND SSDs for datacenters have higher margins
than those used in portable devices such as notebooks and smartphones ad
datacenters need more storage capacity and faster speeds for
data-processing.
In a related note, Samsung previously agreed
with Amazon to export its 3D NAND technology, while Apple was testing
the quality of Samsung 3D NAND SSDs as the iPhone designer also intends
to use Samsung products. Facebook is another target for Samsung to
promote its 3D NAND SSDs.
Samsung seeks to improve its 3D NAND
technology as the world's biggest memory chip producer believes it will
be an important growth driver.
In August 2013, Samsung released
the first-generation SSDs for datacenters and the company released the
3D NAND SSDs in October last year.
While Samsung has first mover
advantage, SanDisk, Toshiba and SK hynix are also well positioned to
benefit from the industry's shift and come up with their 3D NAND
offerings.
Samsung, however, say it will be several generations
ahead and will have solved the teething problems of controller design
and other architectural issues.
http://www.koreatimes.co.kr/www/news/tech/2015/03/133_176227.html
Nanya Technology Corp (南亞科技), the world’s fourth-largest DRAM
chipmaker, yesterday said its board has approved a spending plan that
would see NT$40 billion (US$1.27 billion) invested over the next two to
three years in upgrades to manufacturing facilities that would allow it
to produce 20-nanometer (nm) DRAM chips.
That would make Nanya
Technology the world’s fourth chipmaker capable of supplying 20nm DRAM
chips after Samsung Electronics Co, SK Hynix Inc and Micron Technology
Inc’s Inotera Memories Inc (華亞科技).
Inotera is a DRAM venture between Micron and Nanya Technology.
The advanced technology “will be a lifesaver for Nanya Technology,” company president Charles Kau (高啟全) told reporters.
“Only
20nm technology can be used to [cost-efficiently] make low-power DDR4
and DDR4 chips, which together will account for 80 percent of the
world’s DRAM market in 2018,” he said.
Samsung’s newly released
Galaxy 6 smartphone and One M9 handset from HTC Corp (宏達電) are equipped
with low-power DDR4 chips, Kau said.
“Without low-power DDR4 chips, Nanya Technology’s sales and revenue will run out of steam in the future,” Kau said.
To
fund the technological migration, Nanya Technology plans to raise up to
NT$20 billion by issuing fresh shares to new strategic partners and by
arranging bank loans in the second half of this year.
Kau declined
to comment on speculation that Japan’s Toshiba Corp and US DRAM module
maker Kingston Technology Corp are interested in forming a tie-up with
Nanya Technology.
Nanya Technology plans to begin volume production of 20nm technology in 2017.
Based
on Nanya Technology’s plan, half of its 60,000 wafer capacity will be
upgraded to 20nm technology by licensing technology from Micron. The
chipmaker now makes DRAM chips mostly on 30nm technology.
The company’s board also gave the go-ahead to distribute a cash
dividend of NT$2 per share, after the company reported net income of
NT$28.24 billion last year, or NT$11.77 per share.
The dividend
payout represents 2.52 percent of dividend yield based on the stock’s
closing price of NT$79.5 in Taipei trading yesterday.
Commenting
on the global DRAM market outlook, Nanya Technology vice president Lee
Pei-ing (李培瑛) said average selling prices of DRAM products would
stabilize next quarter as demand gradually recovers from slow seasonal
demand this quarter.
However, global PC demand is still weaker
than expected for this quarter, which is likely to add extra pressure to
the company’s average selling price, Lee said.
For the first two
months of the year the company’s cumulative sales rose 0.37 percent
year-on-year to NT$7.95 billion, according to data compiled by the
Taiwan Stock Exchange.
Nanya shares rose 2.32 percent yesterday in Taipei trading, outpacing the broader market’s 0.76 percent increase.
