14 DAY TRIAL // Ever focusing on more advanced processes, Samsung Electronics appears to have finally decided to start volume production of 2Gb DDR3 memory chips based on the 36nm manufacturing process technology.
Each time a semiconductor manufacturer migrates to a more advanced node, products based on it turn out to be more power-efficient and overall stronger than previous generations.
Samsung has been accelerating its migration to smaller processes for a while and, in the case of the DDR industry, seems to be making another step.
What the company decided, according to a report made by Digitimes, is to commence volume production of its 36nm-based 2Gb DDR3 chips sometime during the fourth quarter of 2010.
This move seems to have already caused speculation on what will happen to DRAM contract quotes and how Samsung's rivals will be affected.
Basically, entering the 30nm-class production will let the hardware maker offer lower contract quotes, essentially making such companies as Elpida and Micron adopt similar tactics.
DRAM makers have also been calling upon the latter two's technologies, and this may lead to a price war at some point in the future.
In fact, according to DRAMeXchange, DRAM contract prices have declined by 13 percent already, during Q3, and should keep falling during Q4, by about 20 percent.
If numbers were to be given, this means that 1Gb DDR3 chips fell to the level of US$1.50.
By jumping to 36nm, Samsung will reduce costs by 30 percent over 46nm products (the outfit's current major DRAM process).
In other words, the price of a single 2Gb DDR3 chip will be driven as low as US$1 on average.
Meanwhile, Elpida is just transitioning from its 63nm node, its mainstream process, to the 45nm manufacturing process technology. As for Micron, it is gradually moving away from the 50nm process to the 42nm node.