Samsung unveils 2-gigabyte chip
Samsung Electronics announced three breakthroughs in key technologies that promise greater data storage and faster processing for computers and mobile devices such as MP3 audio players.
In the first breakthrough, the world's leading semiconductor maker said it has developed the industry's first 60-nanometer 8-gigabit NAND Flash memory chip for data storage. One nanometer is equal to one billionth of a meter.
The new flash memory will allow storage of up to 16 hours of DVD quality video or 4,000 MP3 audio files or songs on a single memory card.
"For the first time in the industry, we have succeeded in commercializing next-generation 60-nano technology," Hwang Chang-gyu, president of Samsung Electronics' semiconductor division, told reporters.
"The new NAND flash memory will enable the development of various mobile appliances," he said.
Samsung's NAND flash business has shown strong growth, with sales expanding from $400 million in 2001 to $2.1 billion last year.
This year Samsung expects to double the volume of NAND sales and thereby to secure a 65 percent global market share.
The company said mass production of the 8-gigabit NAND chip will begin late next year, following the first-quarter 2005 launch of the 4-gigabit NAND flash memory device.
The second breakthrough concerns Samsung's development of the world's first 2-gigabit DDR2 SDRAM by using existing, 80-nanometer micro-processing technology.
The high density, double-data-rate or DDR2 chip will enhance server and workstation performance and enable faster deployment of memory-intensive applications such as real-time video conferences, remote medical services, two-way communications and 3-D graphics, the company said.
What is particularly notable is that the chip was produced using existing 80-nano technology. It was widely believed in the industry that the development of such a high-capacity memory chip would be possible only by using processing technology on a scale of 65 nanometers or less.
"This development has shown that the expansion of semiconductor capacity is also possible by improving design and process technology, rather than micro-process technology alone," Hwang said.
He attributed the success to a combination of three-dimensional transistor technology and the company's state-of-the-art architecture.
Market research firm Gartner Dataquest forecasts that the market share for DDR2 technology will grow from 11 percent this year to 50 percent by year-end 2005, making DDR2 the mainstream DRAM product.
Samsung plans to launch mass production of its 80-nano process 2-gigabit DDR2 SDRAMs in the second half of 2005.
In the third announcement, the company said it has developed the world's fastest 667-megaHertz central processing unit (CPU) chip for mobiles.
In the second quarter, Samsung's memory-chip sales totaled 3.57 trillion won ($3.1 billion), a gain of 13 percent from 3.16 trillion won in the first quarter.
During the third quarter ending this month, memory chip sales are expected to be higher than the second quarter despite weaker NAND flash memory chip prices, the company said.
However, Hwang said global semiconductor sales growth will likely slow to less than 10 percent in 2005, when a sales glut is may undercut prices. Growth in 2004 is expected to be in the 20 percent range, he said.
"The pace of growth will definitely slow for memory chips, mainly due to increased supply," said Hwang, without giving separate figures.
Samsung joins other leading chipmakers in forecasting slower growth next year. Intel Corp., the world's biggest semiconductor maker, and Texas Instruments Inc. both lowered their forecasts this month.
Morgan Stanley last week lowered its estimate for 2005 growth in semiconductor industry revenue to a range of 8 to 12 percent, from an earlier forecast of 13 to 18 percent.
To cope with slowing growth, Samsung plans to increase its focus on chips geared for mobile phones and other devices for handsets, rather than computers.
"In the absence of some killer application, there is not much hope for PC-related chip demand growth other than replacement demand, which in itself isn't that great," said Kim Ki-bong, chief investment officer at CJ Investment Trust Management Co. "Shifting toward chips for mobile products is inevitable."
Compiled from wire services
