Samsung Electronics, the world's top memory chip producer, is betting big on three-dimensional (3D) NAND flash memory chips.

These chips are used in the next-generation solid state drives (SSDs) for corporate servers and data centers.

An advantage of 3D NAND chips is they require a more relaxed geometry process than planar NAND. In one-dimensional NAND, cells run out of electrons as they scale down the micron trail.

With only tens of electrons per cell at the sub-20-nanometer-level processing technology, a NAND chip's performance is quite unpredictable.

A 3D NAND chip, in contrast, has hundreds of electrons per cell, which greatly improves memory production efficiency, density, data storage capacity and performance over existing chips.

The global memory chip market is controlled by the "big three" companies ¯ Samsung, SK hynix and Micron Technology.

The two Korean chip makers ¯ Samsung and SK hynix ¯ are speeding up development of 3D NAND production technology.

Industry officials said Samsung's 3D NAND flash facilities in Xian, China, were on track to improve the quality of the chips before shipping them to clients such as Google, Hewlett-Packard and IBM.

The officials dismissed market rumors that the Xian factory had temporarily suspended production due to to the low quality of the chips.

"Inventory of our 3D NAND flash chips is being managed well," said an official, who asked not to be named. "Samsung's Xian operations, which mainly produce such advanced NAND chips, don't have any technological issues."

Samsung believes the NAND industry is shrinking and becoming more complex. Wafer additions are rational given the high demand growth of the NAND market.

But the high production costs still matter ¯ Samsung is expected to begin significant 3D NAND production from later this year, and its decision to invest further in its Xian facilities depends on market conditions, according to sources.

SK hynix, the largest chip maker after Samsung, is also investing more in 3D NAND flash chips at its plant in the provincial city of Cheongju, south of Seoul.

The SK Group's semiconductor affiliate knows it needs gradually to strengthen its management of its flash memory chip business to diversify its portfolio and cut its heavy reliance on DRAM chips, which are used to write and store data.

In his New Year's message, SK hynix CEO Park Sung-wook said the company may make its Cheongu facilities to 3D NAND flash chip production.

By: DocMemory
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