Samsung starts producing new flash memory

Samsung took time out from fighting about patents to start mass production at a new $10 billion 20nm chip line.

The outfit is hoping to make a bob or two out of the flash memory chip market which is one of the few areas of manufacturing which is making a lot of cash.

It is the first time in five years that Samsung has opened a new production line, and it could bring down the costs of the chips.

Cynics add that it could create a huge over oversupply in the market and kill off smaller rivals.

There is also the small matter of whether its biggest customer Apple will stay buying. The pair are locked in a patent war which is getting increasingly desperate every day.

Apple is the biggest buyer of flash memory, and if it decides that there is too much bad blood between its legal department and Samsung then it will stop buying.

Still, Samsung can look to Sony and other tablet makers to buy flash memory chips.

Apple really would be cutting off its own nose to spite its face. The Samsung plant will be making cheaper chips, which would increase Apple’s margin.

In a statement, Samsung said the new line is the industry’s largest and most advanced memory fab.

Lower line-widths processing technology allows more circuits on a chip, making them smaller, cheaper, more powerful and more energy efficient.