May 25, 1999 in Social Responsibility News

SAMSUNG Electronics Strengthens LCD Chip Business

SEOUL, South Korea - May 25, 2000 - Samsung Electronics Co., Ltd. is bolstering its involvement in LCD Driver ICs (LDIs). Samsung, the leader in TFT-LCDs with 2.25 million panels sold last year (16.7% M/S), is enhancing its vertically integrated supply model by strengthening the technology of one of its major components, the LDI.

The LDI market is continuing to grow this year with increasing demand in the LCD application market. Samsung Electronics officials believe they will easily sell at least US$170 million worth of the devices in 1999 and have set an annual sales target of US$300 million for 2001.

LDI sales have been bolstered by the boom of the TFT-LCD market and the company has selected the LDI as a `strategic` product for its high growth potential. The company plans to aggressively move into the LDI market by developing cost effective products that meet the requirements of specific geographical regions.

The LDI drives the TFT-LCDs used on all kinds of widely used consumer electronics products such as handheld phones, electronic notebooks, pagers and MP3 players. The worldwide LDI market is growing at a rate of 15-20% a year and is expected to reach US$400 million in 2000. Samsung Electronics will expand its market share by being the first to develop and mass-produce LDI versions designed for specific products.

Samsung Electronics is pursuing a strategy that integrates product planning, development, mass production and sales. This approach will enhance the company`s ability to support customer applications as well as production requirements. Examples of products developed to date include the following.

- LDIs used in handsets and pagers have conventionally displayed two shades (black and
white). However, among Samsung`s LDI products is a LDI that incorporates a 4-level gray
scale controller for enhanced graphic applications. Thus it presents 4 different shades of
color (white, light gray, dark gray and black).

- Samsung haks developed an LDI that improves the display of Korean letters, which tend to
break up on Japanese-made LDIs. At the same time, a separate 2-megabit memory has
been built in to display 1 to 4 lines of 8 characters with 16X16 dots format. This makes it
suitable for displaying Asian characters such as Korean, Chinese and Japanese. This new LDI
can be sold throughout Asia.

- Recently, Samsung Electronics completed development of an LDI that is only half the size of
other versions. It is for liquid crystal dot matrix character display systems and displays 2 or 3
lines of 16 characters with 5x8 dots format. As a result, production cost is greatly reduced.
In April, the company began mass-producing this low-cost device, which can be used in
handheld phones, pagers, and the increasingly popular MP3 players.

About Samsung Electronics
Samsung Electronics Co., Ltd., with 1998 sales revenue of 16.6 billion dollars (US), is a world leader in the electronics industry. The Korea-based firm has operations in more than 50 countries with 60,000 employees worldwide. The company consists of three main business units: Multimedia & Home Appliances, Semiconductors and Information & Telecommunications. For more information, please visit our website,

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