Samsung Electronics will start volume production of  2Gb DDR3 chips using 36nm process technology in the fourth quarter of 2010.

The conversion to 36nm will achieve 30% cost reduction compared with 46nm, which is now Samsung's major DRAM process technology. After the process transition, Samsung's production cost for 2Gb DDR3 will be cut to US$1 on average.

Elpida Memory is transitioning directly to a 45nm node from 63nm, which is now its current mainstream process for DRAM memory. Meanwhile, Micron Technology is shifting to 42nm process technology from 50nm.

Industry sources have expressed concerns that Samsung's entry into 30nm-class production will allow the vendor to offer lower quotes than those offered by its competitors. In addition, as Taiwan-based DRAM makers ramp up production with technology support from Elpida and Micron, the possibility of a price war cannot be ruled out.

By: DocMemory
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