S. Korean chipmakers rev up development of 20

South Korea's memory chipmakers are speeding up the development of 20-nanometer class dynamic random access memory (DRAM) modules and seeking to start mass production within the year as part of their efforts to stay ahead of foreign rivals, industry sources said Tuesday. Samsung Electronics Co. and Hynix Semiconductor Inc., the world's two largest producers of semiconductors, are moving quickly to develop key precision machining techniques and are setting up production facilities to churn out cutting-edge DRAM modules, they said. Both companies have announced plans to complete development or start volume production of 20-nano type DRAMs within the year. A nanometer is equivalent to one-billionth of a meter. The new DRAMs that can be used in all types of information technology (IT) products will use up to 20 percent less electricity compared to current 30-nano type chips, can be made more compact and cost less to manufacture. Smaller size and lower power consumption is vital to making better portable IT products such as smartphones, tablet PCs and laptop computers. The latest move comes as rival Elpida Memory Inc. claimed that it started small, sample shipments of 25-nano DRAM modules in late July. The Japanese chipmaker, the world's No. 3 by output, originally announced in May that it would begin volume production starting last month, although South Korean companies have been skeptical of such claims from the outset. Elpida had reported operating losses for the third straight quarter in the April-June period, and may have claimed that it could start volume production to draw in investors. Related to speeding up DRAM production and development, Samsung said that it would start full-fledged production as soon as possible in the second half, while at the same time increasing the percentage of 30-nano DRAMs to 50 percent of all chips made by the company. Initially, the world's largest memory chipmaker said it would produce the more capable chip by the end of the year. Hynix also said that it will speed up development so it can keep pace with industry leaders in the 20-nano class, adding it wants to start mass production of the new DRAMs in 2012. South Korean chipmakers stressed that concentrating on 20-nano class chips will permit them to maintain the lead they have held in the global memory chip market for the past 19 years. Samsung first took the lead when it developed the world's first 64-mega DRAM in 1992.