256-Megabit DRAM chips from Samsung starting mass production
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Samsung to Start Mass Production of 256-Megabit Chips
Seoul, Jan. 4 (Bloomberg)
-- Samsung Electronics Co., the world's biggest memory chip manufacturer, said it will
begin mass- production of 256-megabit dynamic random access memory chips, among
the most advanced computer chips, claiming it as a world first.The move could shake
up the $21 billion global memory chip market, now dominated by 64-megabit
DRAMs. Samsung expects the new chips, which offer four times more memory than
the current industry standard in a smaller space, will be in full commercial use by 2000.
''The best earnings can be made at the early stage of a new generation chip,'' said
Hong Kyung Pyo, a Samsung spokesman. ''Also, getting ahead of our rivals will make
it a lot easier for Samsung to secure more customers.''The company is already in talks
with several computer makers to export the new chips, Hong said.Samsung said it will
produce more than one million 256- megabit drams this year and sell them at around
$400 each at the outset.The company expects NEC Corp. and Toshiba Corp. will join
the 256-megabit dram market this year, predicting the annual supply to rise to as many
as five million units. Accordingly, the unit price will drop to between $150 and $200 by
the end of this year.The new chips will be more attractive to buyers, when their prices
are near four times those of 64-megabit drams, now fetching around $10.Samsung
currently corners a 21 percent share of the global memory chip market. The market for
the 256-megabit memory chips is expected to grow to $3 billion next year and $10
billion by 2001, the Maeil Business Newspaper said.The company plans to spend at
least $1 billion on new production equipment in 1999.Samsung Electronics shares
jumped 9.1 percent to 88,000 won on the Korea Stock Exchange amid rosy earnings
prospects. © Copyright 1998, Bloomberg L.P. All Rights Reserved.
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