March 07, 2001 in Social Responsibility News

SAMSUNG Electronics Expands RDRAM Operations

Samsung Electronics and Intel finalize an agreement to increase Rambus DRAM output.
Intel will support capital expenditure investments required to increase RDRAM production.
Samsung Electronics will turn out at least 10 million RDRAM a month.

San Jose, CA - February 27, 2001 - Samsung Electronics, the world's leading supplier of memory devices, and Intel, the world's largest CPU maker, today announced the implementation of a strategic relationship aimed at expanding the market for Rambusa DRAM (RDRAMa), a next-generation, high-speed memory product. The two companies formally announced their plans at the Intel Developer Forum in San Jose, California..

Both Samsung and Intel agree that world demand for RDRAM is escalating rapidly. By working together, they can secure the production base required to provide enough Rambus chips to meet the burgeoning demand for Pentium 4 based high-performance workstations and desktop PCs.

Under the terms of the agreement, Intel will support capital expenditure investments that will be used to attain additional component test and qualifying capacity needed to boost RDRAM output. Without having to make separate investments on its own, Samsung will be able to turn out at least 10 million RDRAM a month, solidifying the company's leading position in this market.

"Samsung Electronics, as the world's leading supplier of memory products, is committed to fully supporting its customer's needs for advanced memory products," Said Yoon Woo Lee, President and CEO of Samsung Electronics' Semiconductor Business. "We are pleased to be working with Intel to ensure that all in the industry have the RDRAM they need, when they need them."

"This agreement is yet one more step in Intel's long and close association with Samsung Electronics," said Louis Burns, vice president and general manager, Desktop Platforms Group at Intel. "We are gratified that Samsung once again steps up to the plate to assist us in our efforts to ensure our customers' needs are met in a timely and cost-effective manner."

RDRAM demand this year is expected to be around 300 million chips, with 250 million being used in Pentium 4 based PCs and workstations and another 50 million installed in high-performance game products. Applications for RDRAMs are spreading rapidly from the existing PC market to games and other products that require high-speed, high-capacity memories.

Given this kind of rapid growth, RDRAM demand in 2002 is forecast to be at least 600 million chips.

In January, 2001, Samsung completed development of a more affordable RDRAM, which is a likely candidate for use as the main memory in the general PC market.

Now that Samsung has finalized this tie-up with Intel, the company will expand monthly output of 128M RDRAM to at least ten million chips starting in March. Production will then be doubled to 20 million a month in the second half of this year, giving Samsung at least 50% of the market for the next-generation, value-added RDRAM.

About Samsung Electronics
Samsung Electronics Co., Ltd., with 2000 sales revenue of US$30 billion is a world leader in the electronics industry. The Korea-based concern has operations in about 50 countries with 54,000 employees worldwide. The company consists of three main business units: Digital Media, Semiconductors and Information & Communications Businesses. For more information, please visit our website, http://samsungelectronics.com

Rambus, RDRAM and the Rambus logo are registered trademarks of Rambus Inc. Direct Rambus, Direct RDRAM, RIMM and SO-RIMM are trademarks of Rambus Inc. All trademarks and registration marks are the property of their respective corporations.


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