Samsung invests $10bn in 20nm-class DRam memory fab

Samsung is seeking to maintain its position as the world's number one memory provider by starting mass production of 20nm-class DDR3 DRAM chips and moving forward with Nand production.

The company has invested $10bn in a 12-storey semiconductor facility dubbed the Nano City Complex in Hwaseong, which it claims to be the largest of its kind in the world. 

The 20nm-class DDR3 DRAM process improves productivity by 50 per cent and reduces energy consumption by 40 per cent, the firm said.

"The global semiconductor industry is in a period of fierce cyclical volatility, so the opening of this new memory fab and the start of mass production of the world's first 20nm-class DRam are important milestones to reinforce Samsung's industry leadership," Samsung chairman Kun-hee Lee said in a statement.

"We must prepare for an intensifying storm in the semiconductor industry by further enhancing our technological capabilities and expertise in order to maintain our leadership position."

Samsung also started mass production of 20nm-class Nand flash memory chips earlier this month, and is aiming to produce 10,000 12in wafers a month and start production of 10nm chips in 2012.

Intel, Micron Technology and Toshiba announced 20nm process technology for manufacturing Nand flash memory in April.

Samsung has yet to disclose the size, making it difficult to determine which manufacturer is leading the race.

Despite being third in the Nand production market, Samsung is still a big player, according to Daniel Bizo, research analyst at IDC's European storage group.

"However, not all 20nm flash chips are created equal. You can easily have very big differences in speed, especially write speeds, but most importantly, endurance and resiliency against bit error," he told V3.

"Producing very high capacity tiny chips on 20nm is no small technology, and making really good chips is the challenge. The big question is whether Intel/Micron and Toshiba/Sandisk will be able to leverage their head start to fine tune and mature their processes and chips."

The advance in processor technology allows manufacturers to make smaller, cheaper and more energy efficient chips without sacrificing performance as transistors are packed closer together.

Flash memory has been primarily used in tablets and smartphones, but is increasingly making an appearance in larger devices such as laptops.

Samsung is the number one supplier of processors and memory with over 41 per cent of the Nand market, according to IHS iSuppli. Many high-profile devices such as the iPad and iPhone use the company's components.

However, Apple is looking to use other suppliers, such as TMSC and Toshiba, as its bitter worldwide patent infringement dispute with Samsung escalates.

Bizo noted that Apple can easily switch between major players as it is looking for ever lower quotes.

"I doubt that the tension with Samsung in the smartphone business will prevent Apple buying Samsung's flash," he said.

"Apple could just be trying to put pressure on the whole company, but Samsung's semiconductor manufacturing and phone businesses are completely different and independent operations."