October 12, 2000 in Social Responsibility News

SAMSUNG Establishes Mobile Communications R&D Center in China

BEIJING, China #October 12, 2000 #Samsung Electronics, a leading company of the mobile phone industry, opened today a code division multiple access (CDMA) mobile communications research center in China, a nation that is emerging as a major player in next-generation mobile communications.

Beijing Samsung Telecommunications Technology Research Co., Ltd. is located on a site in the Joongkwanchon district of Beijing, the Chinese capital. An official dedication ceremony was held at the People# Assembly Hall on October 12 in the presence of 250 people. This is the first large-scale mobile communications research facility to be established in China by a Korean company. It is a wholly-owned subsidiary of Samsung China Investment Co., Ltd.

The center will be headed up by Wang Tong, a native Chinese, and a local research staff of 40 mobile communications specialists with either Masters degrees or Ph.D.s has already been hired. The staff will be increased to 60 by the end of this year, and some 300 people are expected to be working there by 2002.
This R&D center is different from such facilities operated by other multi-national companies in that the research to be undertaken mostly by Chinese staffs will be focused on next-generation mobile communications core technology and new products that is necessary for the development of the Chinese telecommunications market.

In particular, the Samsung R&D center will work on Sino-Korea joint projects to develop third-generation (3G) mobile communications technology. These projects include the transfer of Samsung# cdma2000 technology to China and the standardization of new mobile communications technology developed by the Chinese. This effort is expected to greatly contribute to the telecommunications expertise of both nations and the expansion of the mobile communications market in China.

Samsung also plans to use its existing production subsidiaries in China to transfer technology for core parts and components as well as provide needed production facilities.

In addition, work will be done on the development of technology and hardware required in the local market. Future projects will include systems and terminals for access networks and IP-based networks.

Samsung Electronics began its mobile communications business in China by providing equipment to Shanghai in June 1997. Shanghai was selected as one of five cities to utilize a commercial CDMA network. Samsung also provides CDMA equipment to a carrier in Hebei, where services are provided to 300,000 subscribers. By year# end, this number is expected to grow to 500,000 subscribers.

In addition, Samsung stands to supply some US$2 billion worth of hardware by 2003 when China Unicom begins to deploy the construction of its commercial CDMA network.

At the same time, Samsung has concluded joint venture agreements with Shanghai Bell for systems and with Kejian for mobile phones. As a result, the company now has the local means to transfer CDMA technology as well as to develop, produce and market next-generation CDMA-based 2.5-generation hardware.

In addition to the new R&D center in China, Samsung Electronics is currently operating CDMA research facilities in the US, UK, Japan and India.

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