Samsung Electronics Co. has become the world’s first to begin mass production of a next-generation double data rate 5 (DDR5) DRAM in a bid to capture potential demand for chips in applications, such as generative artificial intelligence (AI) and data centers, as part of its efforts to offset a deepening slump in the chip industry.

Samsung Electronics said in a press release on Thursday that it moved into mass production of its 16-gigabit (GB) DDR5 DRAM made with the industry’s most advanced 12-nanometer (nm) class processing node. The announcement came as the company intends to solidify its leading position in chip technology and gain traction in an upcoming cycle of recovery.

The performance of Samsung Electronics’ 12-nm class processing node, which utilizes its fifth-generation 10-nm class process technology, is part of the chipmaker’s latest technological progress, industry sources said.

According to the Korean chipmaker, the latest chip has improved by up to 20 percent in wafer productivity compared with the prior generation. Its power consumption also fell by up to 23 percent, allowing data centers to save on energy with better efficiency. The latest chip ensures a lower risk of errors because of its increased cell capacitance. High capacitance results in a significant electric potential difference in data signals, making it easier to distinguish them accurately.

The 12-nm new chip also has a maximum speed of 7.2Gbps, which means it can process two 30 GB ultra-high-definition movies in around a second.

“Our latest DRAM reflects our continued commitment to leading the DRAM market, not only with high-performance and high-capacity products that meet computing market demand for large-scale processing but also by commercializing next-generation solutions that support greater productivity,” said Jooyoung Lee, executive vice president of DRAM Product and Technology at Samsung Electronics.

The latest DDR5 memory solutions, in particular, represent a culmination of years of technological commitment that the chipmaker has made to Extreme Ultraviolet Technology (EUV). Samsung Electronics used the technology in the mass production of DRAMs for the first time among chipmakers in March 2020. In addition, with investments made in advanced micronization technology, the chipmaker was the first to start mass production of EUV-based 14-nm DDR5 DRAMs in 2021.



Industry insiders said that Samsung Electronics is believed to use 12-nm DDR5 mass production as an opportunity to accelerate the ongoing transition from DDR4 to DDR5 memory. The recent decline in chip prices was driven by an excess supply of chips, mainly DDR4 DRAMs. TrendForce, a Taiwanese market researcher, projected that the prices of DDR4 memory for servers will fall by up to 23 percent on quarter in the second quarter.

“For chipmakers, it’s required to reduce production costs in competitive pricing for memory products,” said Nam Dae-jong, an analyst at eBest Investment & Securities Co. “Therefore, they need to ensure advanced micronization technology and greater productivity.”

Market demand for DDR5, however, is expected to grow. As supply of the next-generation DDR5 has partly fallen short of expectations, Samsung Electronics said a production cut on DDR5 memory will be unlikely. According to market research firm Omdia, DDR5 DRAM will account for 12 percent of the DRAM market this year and 27 percent in 2023 and 42 percent in 2025.

As demand for memory chips used in data centers is expected to rise in 2025, Samsung Electronics will aim to take the lead in delivering a diversified lineup of DRAMs designed to use for data center operations and AI applications.

Industry watchers also said Samsung Electronics unveiled the latest chip in preparation for an expected chip market upturn, which is projected to start next year.

Samsung Electronics is the world’s top DRAM supplier, with 42.7 percent of the market in the fourth quarter. The Korean chipmaker holds the leading position in the server segment, the largest consumer of DRAM chips.

By Choi Seung-jin, Lee Sae-ha, and Han Yubin

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