Samsung Electronics, Its Second Explosion with Flash Memory

Samsung Electronics choose flash memory as its future for growth.

Samsung plans to foster flash memory as the main goods for next generation, taking the top position in the world flash memory market and achieve memory semiconductor sales of $10 billion.

Lee Kun-hee, the president of Samsung, made this decision after a special strategy meeting discussing semiconductors which was held for two days from October 9 at the Shilla Hotel. Lee Hack-soo the chief of Downsizing Department, Hang Chang-kyu the president of Samsung Electronics Memory Department, and working level officers and researchers in charge of semiconductor were present at this meeting.

Samsung decided to lean towards the flash memory expected rapid growth rather than the D-ram business as the profit from D-ram is decreasing in accordance with the strategy meeting.

D-ram, memory for the PC, is sensitive to economic conditions, but flash memory for the memory card of mobile phone, digital camera, and MP3 player is growing at an annual clip of 20 percent and is expected to reach $16 billion in sales by 2007.

“20 years ago when we first started the semiconductor business, many people were against it and considered it to be reckless, but Samsung decided to invest after the close application and that the only way we needed to go is this way (semiconductor),” President Lee pointed out, further emphasizing, “Let’s accomplish the second explosion of semiconductor as occupying the first class. “

“The world memory business is tough now, but Samsung Electronics’ sales and profits will grow by more than 20 percent this year compared to last year, and Samsung Electronics will occupy more than 30 percent of the total world memory market of $34 billion,” President Hang said.

At this meeting, the present condition and prospect of the memory semiconductor market, the present condition of developing next generation high-tech, the present condition of technology developing for a diameter of 12inch wafer, and the strategy of trying to get into the top position in the flash memory industry were discussed.

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