Samsung extends its lead in DRAM sector

Samsung Electronics, the world’s second largest semiconductor firm, has achieved a breakthrough in the global chip sector by successfully mass-producing a 10-nanometer-class DRAM chip, the company said Tuesday.

The new 8-gigabit double-data-rate-4 (DDR4) DRAM chip -- based on 1x nanometer chip design and manufacturing technology -- will place the Seoul-headquartered chipmaker in an unrivaled position, according to the firm.
Three letters x, y, and z are used to describe the scale of the chip technology with the three representing high-, mid-, and low-single digits, respectively.

Samsung’s 10nm-class chip technology boasts a 30-percent higher production capacity than a 20nm-class chip technology.

A nanometer is one billionth of a meter and a human hair is around 75,000 nanometers in diameter.

Market analysts said Samsung deployed an 18nm chip design and manufacturing technology for DRAM.

“The 18nm DRAM chip will give Samsung an upper hand in price competiveness as its rivals, including SK hynix of Korea and Micron of the U.S., are still focused on 25nm DRAM chips,” said Doh Hyun-woo, an analyst from Mirae Asset.

“Samsung will continue to widen its lead over the runner-ups in the world’s DRAM sector,” he added.

Pressed to fast catch up with Samsung, SK hynix chief executive Park Sung-wook announced earlier this year that the company would complete the development of its own 18nm DRAM chip in the latter half this year and begin the mass-production of the DRAM chip early next year.

Micron saw its sales drop 30 percent on-year to $2.93 during the December-February period with its operating loss coming in at $5 million, down from $855 million a year before.

Samsung’s latest 18nm chip technology has been deployed in PCs and laptops and will be later utilized for mobile and data server products.

“In the near future, we will also launch next-generation, 10nm-class mobile DRAM products with high densities to help mobile manufacturers develop even more innovative products that add to the convenience of mobile device users.” Jun Young-hyun, president of Samsung’ memory business.

The 10nm-class DRAM for mobile devices will be rolled out later this year, according to the tech giant.

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