March 06, 1996 in Social Responsibility News

SAMSUNG Electronics and SGS-Thomson Microelectronics Extend Micro Agreement

(SEOUL) - Samsung Electronics Co. Ltd. (SEC) and SGS-THOMSONMicroelectronics (NYSE:STM) today announced an extension to their recentagreement on the development and sourcing of micro cores. The agreement hasbeen enlarged to include a license to design and manufacture products basedon SGS-THOMSON's ST20 32-bit micro core, which was designed specifically forhigh volume, embedded control applications.

Designed for use in equipment such as computer peripherals, portablecommunications and consumer electronics, the ST20 is a powerful micro corethat can be combined with other functions using advanced 0.5 micronmanufacturing to create dedicated ICs for specific applications. This,combined with the software efficiency of the ST20 and other features, makeit ideal for cost-sensitive applications.

According to market analyst Dataquest, demand for powerful micros forembedded applications(a) is growing at a rate of 43.9% per year between 1994and 1999 and the market will be valued at $6.7 billion in 1999. In Januarythis year the two companies announced a cooperation in the long-termdevelopment of micro cores, which are key elements in many applicationsincluding emerging high volume markets such as set-top boxes, multimedia PCsand mobile communications. They also announced a license for SEC to useSGS-THOMSON's D950 DSP core, coupled with a reciprocal second sourcingagreement for products based on this family of cores.

Announcing the extension to the agreement, Ho-Moon Kang, General ManagingDirector of SEC's Micro Division and Philippe Geyres, Vice President ofSGS-THOMSON's Programmable Products Group, noted that both companies expectto gain major benefits from their cooperation, which will establish the ST20as an industry standard for high performance, 32-bit embedded controllers.In particular SGS-THOMSON's Philippe Geyres comments, "Our customers, whohave chosen the ST20architecture and productts will welcome this cooperation which allows theexpansion of the product offering and the manufacturing capacity."

Both companies will collaborate in the further development of the ST20family, by expanding the application libraries and the software developmenttools. Since its introduction last year, the ST20 micro core has beensuccessful in a number of high volume consumer applications, includingdigital set-top boxes and global positioning system (GPS) receivers. Unlikeconventional microprocessors, the ST20 core offers a number of technicalfeatures that reduce total system cost - a key parameter for consumerelectronics' manufacturers.

The combination of joint development and high volume sourcing from two majorsemiconductor companies offers customers the advantage of standardization,and high integration efficiency, leading to cost effective products.SGS-THOMSON is currently manufacturing products based on the ST20 core atits 200mm (8-inch) wafer fab in Crolles, near Grenoble, France. SEC willmanufacture ST20-based products at Kiheung in Korea.

Samsung Electronics Co. Ltd. is one of the world's leading manufacturers oftop quality products such as memory chips, computers, communication systemsand HDTV. In 1994, the company developed the world's first prototype 256MDRAM and was ranked world's first in memory business. The company is givingits priority to customer satisfaction and development of high performancemicrocontrollers, LSI for multimedia, DSPs, power ICs, GaAs and nextgeneration memorychips.

SGS-THOMSON is a global independent semiconductor supplier listed on the NewYork Stock Exchange (NYSE: STM) and on the Bourse de Paris. It designs,develops, manufactures and markets a broad range of semiconductor integratedcircuits (ICs) and discrete devices used in a wide variety ofmicroelectronics applications, including telecommunication systems, computersystems, consumer prodructs, automotive products and industrial automationand control systems.

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