Samsung Says Storm is Brewing Over the Semiconductor Industry

· Semiconductor

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Tuesday, September 27th, 2011

Chun Go-eun

Ahn Jeong-kyun

Chairman Lee Kun-hee is being handed an initial version of the semiconductor wafer produced from the 16th line

Another crisis theory from Samsung Electronics' Chairman has emerged, and this time it's about semiconductors. At the 20-nanorated DRAM mass production and semiconductor production line ceremony on the 22nd, Chairman Lee said, "We must be prepared for the heavy storm that will come over the semiconductor industry."

He went on to say, "By the many efforts of the staff, we were able to keep our leadership in technology." He then went on to mention his Storm Theory. With the competition between Korea, Japan, and Taiwan's companies being fiercer than ever and the economic crisis of advanced countries, the price of the DRAM is now at a record low, meaning the situation of the semiconductor industry could grow worse. Chairman Lee warned of a giant rage of a wave that will splash over the semiconductor industry. He also said that the company must concentrate on keeping its technological edge.

As Chairman Lee mentioned, the situation for the global semiconductor industry is very grim. The price of DRAM is half of the manufacturing price. Still, Samsung Electronics went on to mass produce the world's first 20-nanorated DRAMs this 22nd. It has been a year and 2 months since they produced nanorated DRAM. The 20-nanorated DRAM is 50% more productive and eats 40% less electricity than the previous 30-nanorated DRAM. By producing the 20-nanorated DRAM, Samsung Electronics, which is currently the market leader with a market share of 41.6%, will be able to widen the gap with its Taiwanese and Japanese competitors.