Samsung supplying Apple with 18-nano DRAM chips

Samsung has begun supplying Apple with its 18-nanometer DRAM chips, the media have reported on Monday.

According to a report by the Korea Times, sources familiar with the matter have said the hardware, built at the Hwaseong factory, south of Seoul, is being shipped to the American tech giant. The new technology will allow Apple to create thinner, faster and more energy-efficient devices.

"Samsung is the first in the industry to commercialize 18-nanometer DRAM chips after successfully mass-producing 20-nanometer DRAM chips two years ago," said one source. "Amid challenging market circumstances, Samsung plans to lead its chief rivals by steadily advancing its chip-fabrication technology."

Analysts agree this is a huge deal for the South Korean chip maker. With two other major players in the chip industry, SK Hynix and Micron, lagging somewhat behind, Samsung can take full advantage of the new technology.

According to CDRInfo, SK Hynix is currently in the process of developing the 1x-nano DRAM, while Micron is some 'two years behind'.

This new technology will allow Samsung to cut its costs even further, expanding the profit margin, the same report suggests.

"Taking a broad perspective, we think capital spending by leading chipmakers is driven by technology migration roadmaps, increasing capital intensity and end-unit demand and content growth expectations by chip firms," a recent RBC Capital Markets report suggested.