In The worlds number one memory chip maker, Samsung, has announced that it has started mass production at a new $10 billion chip line, as it seeks to raise its share in the booming flash memory chip market. The boom in the flash memory market is mostly the result of greater demand for mobile devices like, smartphones and tablets.
The new production line from Samsung, the first that the company has started in last five years, is expected to sharply lower production costs of the chips and could exacerbate oversupply in the market, stifling smaller rivals. This production line is the companys largest and it is capable of producing chips with 20-nanometre class processing technology.
Lower line-widths processing technology allows more circuits on a chip, making them smaller, cheaper, more powerful and more energy efficient.
Companies like Apple and Sony buy flash memory chips from Samsung. The cost-competitive facility will make it difficult for its major customers to shift away to other suppliers. Immediate impact on the supply side of chips might not be felt, as it will take at least nine months for Samsung to fully raise capacity run rates. Currently Samsung is engaged in a bitter patent dispute with Apple.
Add new comment