Samsung Electronics, the No. 1 memory chip maker, said the start of mass production on a new chip line, as it seeks to increase boosted its market share of flash memory chips on the rise by growth strong demand in mobile products.
Samsung, the world's largest maker of technology by revenue, was aggressive investors in the memory chip maker, global and new production line can exacerbate the excess supply and maintain a smaller rival.
South Korean company said on Thursday a new line, the first in five years, the largest and most advanced manufacturing memory industry plants, the production of chips with 20 nanometer processing technology class.
Width of the bottom line of the processing technology allows more circuits on a chip, so they are smaller, cheaper, more powerful and energy efficient.
The new production line will help Samsung to benefit from growing demand for mobile devices like Tablet PCs and Smartphones, and lower production costs.
Samsung, the world's largest maker of technology by revenue, was aggressive investors in the memory chip maker, global and new production line can exacerbate the excess supply and maintain a smaller rival.
South Korean company said on Thursday a new line, the first in five years, the largest and most advanced manufacturing memory industry plants, the production of chips with 20 nanometer processing technology class.
Width of the bottom line of the processing technology allows more circuits on a chip, so they are smaller, cheaper, more powerful and energy efficient.
The new production line will help Samsung to benefit from growing demand for mobile devices like Tablet PCs and Smartphones, and lower production costs.
"The new line will not have a direct impact on the supply side, as it has about nine months to go completely to the ability of high interest, but it shows Samsung's efforts to participate more in the market for flash chips" said Song Myung-sup, analyst at HI Investment and Securities.
Advantages of Flash Memory
The line first, the NAND type flash memory, widely used in mobile devices as smart phones and tablets.
Advantages of Flash Memory
The line first, the NAND type flash memory, widely used in mobile devices as smart phones and tablets.
Samsung said it has begun to produce chips in the series earlier this month with a monthly production of about 10,000 twelve-inch wafers, and intends to raise production levels further.
Samsung competes with Toshiba Corp. in flash memory and a local rival Hynix Semiconductor Inc., Elpida Memory Inc. of Japan and Taiwan Powerchip dynamic random access memory (DRAM).
The new production line and the DRAM chips with 20 nanometer technology is presented as computer prices have fallen more memory than 30 percent in the last three months are below production costs due to fluctuations in demand computer manufacturers.
Worldwide PC shipments are expected to grow only in the mid single-digit percent this year, as consumers move more and more popular tablets and smartphones.
Smaller competitors are facing a deterioration in profitability and strengthen the view is difficult due to weak demand and falling prices forced the postponement of capital-intensive equipment upgrades.
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