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Samsung Electronics Adds New Production Line and R&D Center to Suzhou, China Facility

on Dec 22, 2003

Samsung Electronics Co., Ltd., the world''s leader in advanced semiconductor technology, today announced the expansion of its Suzhou, China facility with a new assembly and final test line, and a R&D center for package technology and local engineering support. Samsung is the market leader in China for SRAMs, display driver ICs, VCD chips, and TFT LCD panels for Notebook PCs.

"Samsung has been a major semiconductor and TFT-LCD flat panel supplier to China's electronic industry since the late 80's and this investment reinforces our commitment to manufacturer and market advanced, high quality devices for local consumption," said Yoon Woo Lee, president and CEO of Samsung Electronics' Device Solution Network business. "Today Samsung sets another milestone in China. The new R&D center and production line will augment local customer support and strengthen our relationship with China's IT industry and academia."

In 1989, Samsung opened its first China sales office in Hong Kong. Since then, Samsung has expanded sales operations in Shanghai, Peking, and Shenzhen to support China's rapidly expanding IT manufacturing industry.

Samsung established Samsung Electronics Suzhou Semiconductor (SESS) production facility in 1996. Located at the Suzhou Industrial Park in China's Jiangsu Province, the production site first began manufacturing logic devices. Since then, SESS has expanded its capacity and product diversity with a broad line of semiconductors such as microcontrollers, DRAM modules, SRAMs, and Flash memories. The new line No.3 will increase capacity for high performance memories, especially for 256Mbit and higher density DRAMs, Flash memories and SRAMs.

Samsung's new R&D center, Samsung Semiconductor China R&D Co., Ltd. (SSCR), is also located at the Suzhou Industrial Park. SSCR will focus on semiconductor package technology, which compliments the company's other local manufacturing lines. Samsung's first R&D center for the core component business established in China will play a pivotal role in stimulating joint R&D projects with the local academia. Samsung plans to expand its R&D efforts to system solution development by the first quarter in 2004.

Market research firm, Gartner Dataquest, forecasts the China Semiconductor market to reach $28.4 billion US in 2003 and increase to $46.7 billion US by 2005.

The Device Solution Network specializes in semiconductors, TFT-LCD displays and data storage medium for industrial, mobile and advanced computing applications, offering a full line of key solutions of DRAMs, SRAMs, Display Driver ICs, Camera Chipsets, Smart Card ICs, TFT-LCD panels and Flash memories. The Device Solution Network operates overseas sales subsidiaries and mass production facilities to maximize on hand customer support. For more information, visit our website at http://www.samsungsemi.com .

Samsung Semiconductor Inc., a wholly owned U.S. subsidiary of Samsung Electronics Co., Ltd., is located in San Jose, Calif. More information can be found at http://www.usa.samsungsemi.com .

Samsung Semiconductor Europe, a wholly owned subsidiary of Samsung Electronics Co., Ltd., is headquartered in Frankfurt, Germany and London, UK with sales offices all over Europe. More information can be found at http://www.samsungsemi.de . # # #

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