Mass production of the 1-gigabit DDR3 DRAM chip will begin in the third quarter of this year, the company said. A nanometer is one-billionth of a meter.
The company expects overall productivity of its new DDR3 DRAM product will be 50 percent greater than existing 54-nanometer technology and will also lower production costs.
DDR3 DRAM is a random access memory technology used for high bandwidth storage of working data on a computer or other digital electronic devices.
The new product significantly minimizes leakage current and further reduces overall power consumption, with a maximum speed of 2,133 megabit per second, the company said.
Samsung Electronics Co. (KSE:005930) also announced last week it has developed the world's first 40-nanometer dynamic random access memory (DRAM) chip.
The 40 nanometer-class process technology is considered to be the next generation of cutting edge technology and will be used mainly for DDR3 DRAM products.
With an aggressive start in the production of 40 nanometer-class technology, South Korea is expected to fortify its position as a world leader in the market for DDR3 DRAMs, which watchers say will become the dominant product in the second half of 2009.
"Samsung Electronics and Hynix are expected to exercise dominance over the DRAM market, as their technology levels are far superior to Taiwanese chip makers suffering cash problems," said Choi Seung-hoon, an analyst at LIG Investment and Securities.
In the case of cash-strapped Hynix, analysts say that its future competitiveness will depend on how fast the global DRAM market will recover from the slump stemming from a supply glut and weak demand.
Improving cash flows has been a front-burner matter for Hynix this year as the company logged a 4.38 trillion won net loss in 2008, compared with a profit of 364 billion won a year earlier.
(Yonhap)

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