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Global chipmakers are seeking a breakthrough to escape the long-lasting semiconductor price slump. Samsung Electronics' plan is to begin in earnest mass production of the next-generation NAND flash memory storage device, 128GB SSD.
SSDs, or solid-state drives, are an alternative to hard disks, but they can store and erase data much faster. The global market for the product is presently valued at just US$300 million but market researcher iSuppli forecasts it will reach $9.5 billion by 2012. In a bid to dominate the SSD market, Samsung will also mass produce the world's fastest 256GB SSD this year.
Korea's Hynix Semiconductor and Japan's Toshiba, meanwhile, are adjusting their prices through production cuts. Toshiba said last month it will slash production of NAND flash memory chips at Flash Vision, a joint firm it set up with SanDisk of the U.S. Hynix will also stop its NAND flash production line in Cheongju from the third quarter.
Falling prices since last August have dragged down profits of NAND flash chips. The contract price of 8GB MLC, the NAND flash staple product, was $9.50 in August but has since tumbled to $2.38. An industry official says it's difficult to predict how much prices will rebound in the second half due to the sluggish economy, but market rivalry and investment in new areas such as non-memory semiconductors and SSDs are sure to intensify.
(englishnews@chosun.com )
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