The Korean memory giant has begun producing 512-megabit, double-data-rate (DDR) SDRAMs in the 300-mm, 0.12-micron fab, which is located in the Hwasung Industrial complex here, according to Samsung, the world's largest DRAM maker.

The move towards 300-mm production is aimed to boost the company's competitiveness and leadership in the memory markets. In general, a 300-mm wafer line has 2.5 times the capacity of an 8-inch (200-mm) plant, paving the way for lower production costs.

It is also designed to propel Samsung into the world's second largest chip maker by 2005, with worldwide sales of $20 billion, said Chang-Gyu Hwang, president of Samsung's Memory Division.

"Our semiconductor operations will achieve annual sales of $20 billion in 2005 by diversifying our memory product portfolio and maximizing our competitiveness," Hwang said. "We are nowapplying 300-mm wafers to our memory chip mass production and have begun mass-producing 512-megabit DRAMs to upgrade our lineup and satisfy demand for higher-capacity memory products," he said.

In July, Samsung started up the test operations within the 300-mm wafer line, and by September, the first commercial products were coming off the line, according to the company.

By 2003, Samsung will move its 300-mm fabs to the 100-nm (0.10-micron) node. It will produce 512-Mbit DRAMs and other products.