May 12, 1999 in Social Responsibility News

Joint System for the Mass Production of GMR Head

Samsung Electro-Mechanics Co., Ltd. (SEM) and Sony Corp. of Japan has set up a joint system for the mass production of giant magneto resistive (GMR), a core part of HDD from June of the year.
The recording density of MR head is of a critical importance for the memory capacity of HDD. GMR is a generic name for memory capacity exceeding 4.5 Gb per sq. inch.

As high speedy moving image data and software program grow in their capacities, the HDD capacity of computers expand as well and GMR is inebitable for capacities exceeding 10 giga bytes.

GMR head is a part of the largest development which has gone into production this year throughout the world. This is a product of high value addition whose profit rate is more than 40% for Japanese makers. Samsung Electro-Mechanics is also expected to benefit from higher profit with the production of GMR.

Business Cooperation with Sony has been pushed for the production of GMR since last year. As an initial stage, the two companies agreed that Samsung Electro-Mechanics process wafers manufactured and supplied by the Japanese maker. At the next stage, Samsung Electro-Mechanics will jointly develop and produce high-capacity an high speed heads from 2000.

In particular, the production of wafer, which characterized heads, requires extremely precise optical process as it is the case with semiconductor.

The company's strategic alliance with Sony will make Samsung Electro-Mechanics equal to the world's leading head makers in terms of competitiveness.

Samsung Electro-Mechanics plans to raise the sales of MR heads to 700 billion won in 2002 to occupy 5% of the world market, starting from 50 billion won in this year. The MR business will become one of the areas the company is most concerned about.

Estimated at 10 billion this year, the worldwide demand for MR heads for HDD is expected to soar not only for high-capacity HDD but for web TV, digital contents, and high -technology AV equipment.

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