March 14, 1996 in Social Responsibility News

SAMSUNG Mass Producing CDMA-Terminals

. Annual production capacity to reach 1.5 million units by 1997.
. Company to simultaneously pursue domestic sales and export.
. Localized production of parts and components being promoted.
. "Super-slim" model weighs only 175 grams, and is 172 cc.

(SEOUL) - Samsung Electronics Co. (SEC) has completed the installation of a production line dedicated to CDMA hand-held phones at its Kumi complex in Korea.

The line went into mass production March 14 with an initial annual capacity of 500,000 units. Samsung plans to expand production to 1.5 million units a year with the addition of a second plant at the same location in order to meet an expected demand for CDMA terminal equipment.

The product (model name: SCH-100) was developed by 30 researchers at a cost of W8.5 billion (approximately US$ 11 million).

The super-slim (172 cc) phone weighs just 175 grams, the lightest CDMA terminal in the world.

Samsung Electronics has already developed the multilayer circuit board, high-frequency amplifier, LCD module and SRAM needed to produce this item.

The company plans to have the capability to produce the CDMA modem and base band chip set, and radio frequency (RF) ASIC by 1997.

Samsung Electronics is working closely with other Samsung Group affiliates (Samsung Electro-Mechanics Co. & Samsung Display DevicesCo.) to develop and mass produce related parts and components as quickly as possible in order to boost product competitiveness.

Currently Samsung is locally producing 20% of the phone unit. In 1997 the local production ratio will be 50% and will go to 75% by 1998.
To make this happen, Samsung plans to invest additional W30 billion (US$39 million) in R&D over the next three years (until 1998).

On April 1, Shinsegi Telecom Co. in Korea will begin offering commercial CDMA (digital telecommunications) service in Seoul and Taejon, joining Korea Mobile Telecom in this business.

Domestic annual dremand for phones is expected to be 1.25 million units in 1998, as Koreans switch over from analog to digital cellular phone service.

Moreover, commercial CDMA service is scheduled to begin in the US the third quarter of this year.
US demand for CDMA phones is forecast to be 400,000 in 1996, 1.06 million in 1997 and 2.24 million in 1998.

Therefore, Samsung is positioning itself to be an early leader in the export of CDMA equipment to the world market by pursuing aggressive marketing and product development activities.

The CDMA hand-held phones being sold in the Korean market have a dual mode function that makes them compatible with both analog and digital systems.

They feature a large (3 lines of characters, 2 lines of icons) LCD that indicates signal (radio wave) strength, battery reserve, the receipt of
voice messages, whether the user is in a CDMA service region, reserved time and current time.

Conventional batteries can on average operate for 60 minutes of telephone conversation or 21 hours on standby.

The battery used in the Samsung product has a greatly improved capacity of up to 180 minutes of phone service or 65 hours on standby.

Samsung Electronics Company Ltd., a US$ 21 billion flagship company of Korean-based Samsung Group, is a world leader in the electronics sector, with operations in more than 60 countries.

The company develops, manufactures, and markets audio and video products, household electronics goods, computers & peripheral products, display products, telecommunication & information systems, software tools & semiconductors.


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