Samsung Electronics Co claims it has developed the world’s first prototype 1 Gb flash memory chip for use in next-generation digital multimedia devices. Flash memory, capable of preserving stored data even when power is off, is widely used as a portable memory medium in MP3 players, digital cameras, and Palm PCs. The chip is smaller than half the size of a business card and consumes less electricity than other chips but it has a memory capacity equivalent to 560 high-resolution pictures and 32 CD-quality tunes.

With non-volatility and enhanced memory efficiency, flash memory chips will replace the current mainstay DRAM (dynamic random access memory) chips, a Samsung official told a Korean press conference. Japanese electronics makers, such as Toshiba, Sanyo and Fujitsu, are shifting to flash memory, he said, but claimed Samsung is up to a year ahead of its competitors in developing the chips.

Samsung Electronics has spent 20bn won ($16.6m) in a six-month development project involving more than 100 researchers, he said and added the company plans to start mass producing the new chips using 0.15micron processing technology in 2002.

The growth potential is enormous as demand for digital multimedia devices, which need chips with a small size and large memory capacity, is rising sharply, he said. Samsung estimates the global market for flash memory chips will grow from $400m this year to $2.2bn in 2002. The company is targeting sales of $200m for its 128MB flash memory product this year.