Samsung starts transition to faster next-generation memory

Photographer: SeongJoon Cho / Bloomberg

Samsung Electronics Co. has announced plans for its next generation of memory chips that will double the speed of existing technology and provide the largest capacity to date, initiating a transition that will accelerate the growth of data centers and supercomputers.

The world’s largest memory chip maker said it has developed 512 GB DDR5 (Double Data Rate 5) memory modules based on a High-K Metal Gate (HKMG) manufacturing process traditionally used in logic chips. DDR5 memory is twice as fast as current DDR4, while reducing leakage and consuming about 13% less power.

Samsung expects the transition to DDR5 to start in the second half of this year. The chip industry has been anticipating adoption of the new memory standard, and support for it will come Intel Corp.’s upcoming Xeon Scalable processors, codenamed Sapphire Rapids. In addition to working with the two main CPU vendors, Intel and Advanced Micro Devices Inc. Samsung has sent samples of its new memory to developers of data center platforms, the company told Bloomberg News.

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Analysts estimate that DDR5 chips will be about 20% larger than DDR4 parts, adding pressure on semiconductor supply chains. Samsung plans to begin shipments this year and gradually expand its manufacturing processes – through the use of extreme ultraviolet lithography – and its pricing, which will include an early-period premium. The crossover between DDR4 and DDR5 will take place in the second half of 2023, the Suwon-based company said.

“As the penetration rate of DDR5 gradually increases, the DRAM shortage is expected to continue in 2022,” said Avril Wu, vice president at TrendForce Research. “We also initially expect a price increase of 30-40%.”

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