September 06, 2000 in Social Responsibility News

SAMSUNG Announces New Vision for the Semiconductor Business

SEOUL, Korea #September 6, 2000 #Ahead of operations at its new Line 10, Samsung Electronics announced its new vision for the semiconductor and TFT-LCD (This Film Transistor-Liquid Crystal Display) businesses. With the slogan #ecoming the World# Best Semiconductor and TFT-LCD Company# Samsung will embark on a new project that will distinguish it as the best in the semiconductor and TFT-LCD industries.

The president and CEO of Samsung Electronics#Semiconductor Business Y. W. Lee states, #amsung will improve its competitiveness in the Memory, System LSI and TFT-LCD businesses, reaching total sales of $30 billion by 2005.#

In order to accomplish this goal, Samsung Electronics will strengthen its position as the number one supplier of DRAM (Dynamic Random Access Memory), SRAM (Static Random Access Memory), NAND flash memory and next-generation Rambus DRAM products. The System LSI (Large Scale Integration) business will be organized around 8 key strategic product areas, becoming the top manufacturer in all of these fields by 2005.
In answer to concerns over the recent oversupply of DRAM chips, Y. W. Lee states, #he mercurial growth of the Internet market and digital media products will lead to a shortage of DRAMs until the year 2002.#

In response to this expected shortage, Samsung Electronics will begin production at Line 10, which is located in a second fabrication facility in Hwasung, Korea, and the company expects to begin construction of Line 11 later this month. Production is expected to begin at Line 11 in the second-half of 2001. These additional lines will allow the company to become the first-to-market with next-generation, high-capacity memory products, such as Rambus DRAM and flash memory.

Y. W. Lee adds, #amsung Electronics was the first company in the industry to operate a 300mm wafer pilot line. We have secured the technology to construct a 300mm wafer line within Line 11. The line will be operational from the second-half of 2001.#

Samsung Electronics is also able to accommodate its buyers#growing demand of System LSI semiconductors. Next month, the company plans to break ground on a new 8-inch production line exclusively for System LSI semiconductors. Production of 0.13- to 0.18-micron design rule ASIC (Application Specific Integrated Circuit), CPU (Central Processing Unit) and SOC (System-on-a-Chip) products will begin from early 2002.

Through these efforts, System LSI division sales will increase from this year# $1.7 billion by 24% every year to reach $3 billion in 2002 and $5 billion in 2005.

In addition, Samsung will nurture its LDI (LCD Driver IC), MCU (Micro Controller Unit), CPU and System ASIC business, becoming a top-tier company by 2002. By 2005, the company will nurture its mixed signal, digital consumer, PC and peripheral, and telecommunications network chips to become the top company in these 4 strategic areas.

In addition, Samsung will nurture its LDI (LCD Driver IC), MCU (Micro Controller Unit), CPU and System ASIC business, becoming a top-tier company by 2002. By 2005, the company will nurture its mixed signal, digital consumer, PC and peripheral, and telecommunications network chips to become the top company in these 4 strategic areas.

Samsung has attained the number 1 position in the mid-to-large-size screen TFT-LCD market since 1998. Recent world# first developments in smaller screens such as the 2-inch product for IMT-2000 terminals and 6.6-inch high-resolution product will assure Samsung# overall position in the market. The company aims to secure 20% market share and above for all 4 major application markets, including the notebook PC, monitor, LCD TV and small-to-mid-size screen markets.

With the added punch in growth from the memory, System LSI and TFT-LCD businesses, Samsung# Semiconductor Business expects to record 2000 sales of $13 billion.

According to the technology research firm Dataquest, the world semiconductor market is expected to grow from this year# $220 billion to $320 billion by 2002. In particular, the memory market is expected to grow at an average yearly rate of 36% from this year to become a $99 billion market.


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