Samsung is launching the transition to a faster next-generation memory

Samsung Electronics memory modules before earnings announcement

Photographer: SeongJoon Cho / Bloomberg

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

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

Samsung expects the transition to DDR5 to begin in the second half of this year. The chip industry has anticipated and will receive support for the adoption of the new memory standard Intel Corp.’s future scalable Xeon processors, codenamed Sapphire Rapids. In addition to the partnership with the two major CPU vendors, Intel and Advanced Micro Devices Inc., Samsung has sent samples of its new memory to data center platform developers, the company told Bloomberg News.

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Analysts estimate that DDR5 chips will be about 20% larger than DDR4 parts, which will increase the pressure on semiconductor supply chains. Samsung plans to start deliveries this year and gradually evolve both its manufacturing processes – expanding the use of extreme ultraviolet lithography – and prices, which will include a premium for the first period. 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 lack of DRAM is expected to persist in 2022,” said Avril Wu, vice president of TrendForce Research. “We also expect an initial price increase of 30-40%.”

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