Samsung has launched a ten billion dollar production line earlier today for memory chips that are used exclusively in tablets and smartphones. Samsung is emphasizing its dominance in the memory chips industry even though the smaller players in Japan and Taiwan are cutting down output in the midst of a downturn in this sector that has led to the chips prices being driven down and it has put even some manufacturers into losses.
Samsung is the world’s largest memory chip maker. It is going to begin mass production of computer memory chips that are known as Dynamic Random Access Memory (DRAM) by using a 20-nanometer process technology. Its rivals are now moving towards the less advanced 25-nanometer process to produce these DRAM chips. Samsung feels that it should prepare for an intense storm building up in the semi conductor industry by improving its technological capabilities and expertise to maintain its leadership.
Toshiba Corporation follows Samsung in the market share of the global DRAM chips. The Chips Division of Samsung has remained its biggest provider of profit in the second quarter of this year though its earnings this year are well below last year’s levels. Samsung is planning to begin production of more advanced flash chips using the 10-nanometer process technology next year.
The chip makers are in the process of working continuously to cut costs in the process technology. Samsung is aiming to raise its share further in the flash memory chip market that is triggered by the heavy growth in demand of mobile products.