Toshiba Corp, IBM Corp and Siemens AG claim to have developed the world’s smallest memory chip. The dynamic chip, built using 0.175 micron process technology, will mean a reduction in production costs. However, according to Richard Gordon, semiconductor analyst at Dataquest, the technology advance should be seen as a reaffirmation by the companies of their intention to keep pushing the envelope of DRAM production in a hyper-competitive market. He notes that a move to a 0.175 micron process is minor, compared to the current transition in mainstream DRAM manufacturing from a 0.25 to a 0.18 micron process. Toshiba plans to start full domestic production of the new chip late in 1999, later moving the technology to its US plant, which is a joint venture with IBM.