February 27, 2004 in Social Responsibility News

SAMSUNG Electronics Establishes SystemLSI Research Facility in China

Seoul Korea - February 27, 2004: Samsung Electronics Co., Ltd., the world leader in advanced semiconductor technology, announced today that it has begun to localize its System LSI operations in China, which is rapidly becoming the world’s largest IT market. On February 27, Dr. Oh-Hyun Kwon, President of Samsung Electronics’ System LSI Business, was joined by the Zhejiang Provincial Governor and various other local government officials and party members for the official opening of the System Solution Center, attached to Samsung Semiconductor China R&D, Ltd. in Hangzhou.

At the ceremony, Dr. Kwon said, “ Chipmakers are increasingly required to provide system solutions. We are establishing this center in Hangzhou to accelerate our ability to provide the full range of products and services needed locally. The synergy generated here by combining Samsung’s world-class semiconductor technology with China’s outstanding human resources will make this center one of the best in the field.”

Electronics products are quickly going digital and


multiple functions, driving demand for highly integrated system-on-a-chip (SOC) devices. At the same time, the industry is migrating from single value-added chips to system level solutions that encompass SOCs, software and reference platforms. Therefore, system solution competencies are


becoming an important determiner of competitiveness in the semiconductor industry.

The new Hangzhou center will bolster Samsung’s status as a local total solution provider. Major R&D areas will be system solution development, including software, reference platform, for LCD monitors, CD players, video CD players, and DVD players, and System LSI chip design including MCUs.

Moreover, the Hangzhou System Solution Center will work closely with local universities including Zhejiang University, which boasts one of China’s leading Science & Engineering Departments and is renowned for its on-campus SOC research center. The Samsung facility plans to recruit at least 100 engineers by the end of next year


will then receive up to one year of training in chip design and system solution development in Korea.

Samsung currently boasts two top-selling System LSI devices in China, a display driver IC (DDI) and video CD chip. The initial goal for the Hangzhou R&D operation is to increase that number to ten by 2006, to include CMOS image sensors, and SOC chips for digital TVs and DVD players.

About Samsung Electronics

Samsung Electronics Co., Ltd. is a global leader in semiconductor, telecommunications, flat panel display and digital convergence technology. Samsung Electronics employs approximately 75,000 people in 89 offices across 47 countries. The company is the world leader of CDMA mobile phones, memory chips, TFT-LCDs, monitors and VCRs. Samsung Electronics consists of six main business units: Corporate Technology Operations, Digital Media Business, Telecommunication Network Business, Digital Appliance Business, Semiconductor Business, and LCD Business.For more information, please visit http://www.samsung.com.
Reference Data

Summary of Hangzhou Facility

- Purpose: Respond


to the market by developing China-specific devices locally

- Official Name: System Solution Center at Samsung Semiconductor China R&D, Ltd. (SSCR)

- Research Area: Chip design (MCUs and specified System LSI designs for local market) and system solutions for LCD monitors and optical A/V players such as DVD players, video CD players, and CD players.

Samsung’s Leading Products in China System LSI Market

- Two Market leading products achieved in 2003

☞ DDI and Video CD player ICs

- Ten Market leading products by 2006

☞ DDI, Video CD players, CD player ICs, MP3 player ICs, SOC for DVD players, MCUs, CMOS image sensors, smart cards, SOC for digital TVs and

mobile application processors.

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