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Korean chip makers Samsung Electronics Co. and Hynix Semiconductor Inc. are rushing to increase production of NAND flash chips based on 60-nano technologies, as demand for the non-volatile memory chips increases.
NAND chips are widely used in digital cameras, mobile phones, USB flash drives and portable music players. NAND, for example, can handle all the main functionality for Apple’s newly released iPod nano, such as the user interface and management of music files. The small-size, large-capacity device is also fast replacing hard drives embedded in laptops.
According to industry sources yesterday, Samsung plans to expand its proportion of 60-nano NAND chips from the current 50 percent to 75 percent in the fourth quarter. Asia’s largest semiconductor maker is currently rolling out 60- and 70-nano NAND chips. The application of 60-nano technologies - 60 nanometers amounts to 1/2,000 of the width of a single hair of an adult - will drive up Samsung’s NAND production efficiency by 25 percent compared to using 70-nano technologies, experts say.
Samsung began to roll out eight-gigabyte 60-nano NAND chips last July.
Samsung`s 8-gigabyte NAND flash chips based on 60-nano technology [Samsung Electronics]
“This microscopic technology will help enhance our original cost competitiveness,” an official at Samsung Electronics said. In a related move, Samsung plans to roll out more multi-level cells, or MLCs, in the fourth quarter. MLCs will take up about 60 percent of the company’s NAND flash production, while single-level cells or SLCs will account for the remaining 40 percent.
MLCs, capable of storing two bits per cell, have twice the storage capacity of SLCs.
“We’re trying to meet increased consumer demand for bigger storage tools,” the official said.
Hynix Semiconductor will begin rolling out NAND chips based on 60-nano technologies in the fourth quarter. The world’s third-largest semiconductor manufacturer currently produces 70- and 90-nano NAND chips.
The M8 and M9 production lines of the company’s Cheongju plant, currently manufacturing 90-nano NAND chips, will be switched to mass produce 60-nano NAND chips.
60-nano NAND chips are expected to account for at least 5 percent of Hynix’ production portfolio in the fourth quarter, experts forecast.
Hynix expanded its proportion of 70-nano NAND chips from 20 percent in the first quarter to 50 percent in the second quarter.
The company plans to raise its share of MLCs from the current 40 percent to 50 percent in the fourth quarter.
Also, this hopeful projection will have a positive impact on new convergence chips such as moviNAND, industry watchers say.
MoviNAND, first showcased in the Samsung Mobile Solution Forum last March, refers to an embedded combination of NAND flash memory, a multimedia card controller and onboard firmware.
Samsung said it will shortly start rolling out two-gigabyte moviNAND chips.
According to estimates by research firm, iSupply, Samsung accounts for 53.4 percent of the global NAND flash market with related revenues of $5,742, followed by Toshiba with 22.1 percent and Hynix with 12.8 percent.
