As reported in the JoongAng Daily, Samsung Electronics has developed DDR2 dynamic random access memory using 40-nanometer technology, becoming the first among the world's leading chipmakers to do so. This new technology allows Samsung to enhance production by 40 percent over the current 50 nanometer technology that it and Hynix are using. The 40 nanometer DRAM chip also consumes up to 30 percent less electricity than chips produced with the older technology.
For chip makers, developing higher DRAM density means they can cut production costs and lead market trends by providing the latest DRAM chips at higher prices. Since chips are produced from a wafer, the smaller chips are, the more chips are produced out of one wafer.
This new development gives Samsung a head start on its rivals and industry observers said it will take two years for them to catch up.