Samsung Electronics announced beginning of production of its 1Gb DDR2 memory chips using 90nm process technology. Usage of thinner manufacturing process will allow Samsung to decrease the cost of DDR2 memory, which is likely to catalyze more users to adopt the type of DRAM for their computers.

“By rapidly moving to 90 nm production technology in the production of 1Gb main memory, we are leading the way in attaining the highest density modules afforded by smaller geometries and accompanying manufacturing refinements,” said Jon Kang, senior vice president, technical marketing, Samsung Electronics’ US sales subsidiary.

Samsung uses 90nm fabrication process and 300mm wafers to make 1Gb DDR2 memory chips that are intended to operate at 400MHz and 533MHz frequencies. Typically thinner manufacturing processes allow makers to get more memory die from a single wafer, which automatically reduces the cost of every single die. Provided that mainboards based on Intel’s DDR2-supporting chipsets for desktops, workstations and servers are enough cost-effective, lower-cost DDR2 may gain popularity.

Samsung Electronics started to transit its memory production to 90nm process technology in July, 2004.By the fourth quarter of this year, the company will be ramping monthly production of 1Gb DRAM using the 90nm process to 1 million units, according to the company’s estimations.

Samsung expects 90 nm 1Gb DRAM will become the leading memory product over the next two years. According to market analyst firm Dataquest, the 1Gb DRAM market will grow rapidly, from $1.3 billion in 2005 to $17 billion by 2008 at a CAGR of 105%.