Samsung, Hynix to cooperate in chip research

SEOUL, Sept. 11 (Yonhap) -- Samsung Electronics Co. and smaller chipmaking giant Hynix Semiconductor Inc. will begin joint research on next-generation semiconductors in January next year, a move intended to help South Korea stay ahead in intensifying global competition, the government said Thursday.

The two companies will invest a total of 24 billion won (US$21.8 million) over the next four years to develop futuristic chips such as spin torque transfer magnetic random access memory (STT-MRAM) and various non-volatile memory devices.

The government will pick up half of the envisioned investment, according to the
Ministry of Knowledge Economy.

The ministry said the chips promise new potential for electronic devices as they
may allow manufacturers to overcome the current 40-nanometer integration ceiling
of flash memory units. Non-volatile memory devices are gaining importance because
of their ability to store information even if the device is turned off.

The ministry expects to use the technologies to grab 40 percent of the
non-volatile memory market by 2012.

Samsung will also launch joint research with flat-panel maker LG Display Co. in
November of this year to develop a key display part. They will work together to
produce a stepper, of which production technologies are currently exclusively
owned by Japanese rivals, the ministry said.

The cooperation comes as South Korea's tech giants have been facing mounting
challenges from rivals in Japan and China. Samsung is the world's No. 1 computer
memory-chip maker and flat-panel producer. LG Display and Hynix are the No. 2
players in each sector.

kokobj@yna.co.kr

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