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Samsung started boosting its production of 25nm DRAM chips

Samsung's decision to boost 25nm DRAM production poses a threat to Micron Technology and SK Hynix (KRX:005930, NASDAQ:MU, KRX:000660)

| RAM News | Posted: Feb 16, 2014 9:17 pm

Samsung Electronics has started increasing its 25nm DRAM production with the hopes that it can grab a good share of the DRAM market while they still can. The South Korean based chipmaker is taking advantage of the situation courtesy of an accident that broke out at SK Hynix's DRAM production fab in China in September 2013.


TweakTown image news/3/5/35472_1_samsung_started_boosting_its_production_of_dram_chips.jpg


Because of the fire that broke out in its plant, one third of the DRAM's production halted. Samsung Electronics and Micron Technology are the only DRAM chipmakers who are close enough to compensate for the production scarcity, including the production of chips for Apple Technology and GDDR5 for video cards.


Samsung Electronics has an advantage since they already have a 25nm DRAM production fab. The majority of DRAM production from Micron is based on 30nm process, and its technology transition to 20nm production won't be completed until the end of 2014. It was only recently when Micron completed its transition to manufacture 25nm chips via its plant in Hiroshima. This fab was formerly owned by Elpida Memory and produced DRAM chips for mobiles.


Whether Micron can keep up with Samsung Electronics with its newly upgraded 25nm DRAM production fab is something that we'll have to wait and watch.


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