Samsung Electronics has big plans for DRAM and NAND memory innovations in 2021 to help it remain number 2 globally in semiconductor production.
The company announced fourth quarter 2020 earnings last week and said it will accelerate migration to 1z-nanometer DRAM and 6th generation V-NAND to “enhance cost competitiveness.”
In the latter half of 2021, it also plans to introduce next generation products such as the world’s first multi-step extreme ultraviolet lithography (EUV)-based 1a-nm DRAM and 7th generation V-NAND. Also, the company’s foundry business aims to expand mass production of its 5 nm EUV process.
The company also announced its semiconductor business produced 18.18 trillion Korean won ($16.3 billion) in revenues in the fourth quarter, up from 16.79 trillion won in fourth quarter 2019.
For all its businesses including semiconductors, mobile, display and consumer electronics, Samsung reported 2020 revenues of 237 trillion won ($212.2 billion) up by 2.8% from 2019 with 36 trillion won ($32.2 billion) in profit.
The overall business saw revenues in the fourth quarter decline 8% from the third quarter due to weaker memory prices and the negative impact of the Korean won appreciation.
In 2020, Samsung spent 38.5 trillion won ($34.5 billion) on capital expenses with 32.9 trillion won going for semiconductors, including memory capacity expansion and the introduction of advanced process technology. The remainder went for expansion of a 5-nm EUV facility.
Samsung expects weaker first quarter result and said the memory market will recover in the first half of 2021.
Competitors SK Hynix and Micron recently announced memory innovations as well. Analysts have noted a steady increase in the importance of memory and storage chips with advances in servers, 5G, electric vehicles and assisted driving technologies.
Samsung shares traded at 84,600 won ($75.81) on Tuesday. For the last six months, they reached their high of 91,000 won ($81.55) on Jan. 11.
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