Samsung has produced its first 70nm DRAM chips, allowing it to double the number of chips on a single silicon wafer.

The world's largest memory chip maker said it now has a 512Mb DDR2 DRAM chip. The price of the most widely used DRAM chips have fallen by over a third so far this year.

Samsung estimates the number of chips it will be able to obtain per silicon wafer will be at least 100 percent higher compared to the 90nm technology in use on most of its DRAM production lines today.

"We won't use the 70-nanometer technology for DRAM until the second half of next year," said a Samsung representative. The company already makes 70nm NAND Flash memory but DRAM is produced using 90nm and 80nm processes.

The company had to make several technological innovations to tweak 70nm production technology to overcome limitations of stacked DRAM cells and improve the data refresh function.

Samsung said it would begin using 70nm technology for DRAM in the middle of next year, starting with 512Mb, 1Gb and 2Gb capacities.