September 29, 2005 in Social Responsibility News

SAMSUNG Electronics Launches Second-Phase Investment Strategy for Hwaseong Semiconductor Plant

Seoul , Korea – September 29, 2005 : Samsung Electronics Co., Ltd., the leader in advanced semiconductor technology, today held a ground-breaking ceremony to kick-off the company's second round of investments in its Hwaseong semiconductor plant. T his activity marks the next step in the company's seven-year investment plan for the site. Hwaseong's second phase will be located on 230-acres / 960K- ㎡ / 290K-pyong that is slated to house one R&D facility and eight fabrication lines by 2012, calling for an estimated capital expenditure (CapEx) of $33billion.
“Breaking away from conventional concepts welcomes previously unsought of possibilities that benefit consumers with new conveniences and luxuries”, said Chang-Gyu Hwang, president and CEO of Samsung Electronics' Semiconductor Business. “By successfully executing on leading-edge R&D and manufacturing technologies, we are driving the adoption of innovative semiconductor technology solutions in the marketplace.”
New Research and Development Line
Samsung's Next-generation R&D line (NRD line) is scheduled to begin operations in May 2006. The NRD line will be a double tiered structure clean room with adjoining office space for research and development of next-generation technologies including nano and process technology, and other materials for both memory and system LSI semiconductors. The company's total investment for the second 300mm R&D line is expected to be approximately $860million.
The NRD line is the newest addition to Samsung's five existing R&D dedicated lines where future advancements in memory and logic technologies such as PRAM, FRAM, DRAM, Flash memory, and CMOS image sensors are currently taking place. Samsung expects its total R&D workforce to add 5,000 more engineers by 2012.


Long-Term Dedication to IT Innovations
Samsung's main semiconductor fabrication site, Giheung, was established in 1983. After installing a total of fifteen fabrication and R&D lines in Giheung, an expansion was initiated in nearby Hwaseong, giving the entire site the name Giheung-Hwaseong. When completed in 2012, Samsung's Giheung-Hwaseong complex will be the world's largest semiconductor fabrication facility.
The long-term investment plan reflects Samsung's strong commitment to supporting leading-edge technologies that will create new markets and applications. This investment plan will be fine-tuned periodically through short and long-term market reviews.
As part of the second-phase at the Hwaseong complex, the first fabrication line, line no.15, is currently under construction with plans to finalize the outer shell by the first half of 2006. Out of the eight new fabrication lines, Samsung expects four to be designed for capacities higher than conventional lines with the possibility of a 300mm or larger wafer-unit. The entire expansion project is expected to bring about 14,000 new jobs to the Korea economy.
The Hwaseong plant was first established in 2000. Phase-one housed five fabrication lines and one R&D line, R 2 line, on a total area of 150-acres/ 630,000- ㎡ / 190,000-pyong. After opening its first 300mm-fab MPS line in 2001, Samsung experienced a steep growth in global memory semiconductor market share from 18 percent in 2001 to 25 percent in 2002.
Samsung's timely investments are based on careful analysis and market sensing, enabling the company to meet new demands ahead of the competition. Such aggressive but carefully planned investments has built the backbone of the company's highly profitable performance over the past decade.


About Samsung Electronics


Samsung Electronics Co., Ltd. is a global leader in semiconductor, telecommunication, digital media and digital convergence technologies with 2004 parent company sales of US$55.2 billion and net income of US$10.3 billion. Employing approximately 113,600 people in over 90 offices in 48 countries, the company consists of five main business units: Digital Appliance Business, Digital Media Business, LCD Business, Semiconductor Business and Telecommunication Network Business. Recognized as one of the fastest growing global brands, Samsung Electronics is a leading producer of digital TVs, memory chips, mobile phones, and TFT-LCDs. For more information, please visit www.samsung.com


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