Samsung to supply $16 billion parts to Dell

Samsung Electronics said Thursday that it would supply core computer parts worth $16 billion to Dell Computer of the United States. The long-term supply contract is the largest the firm has ever signed with a single computer system company, officials said. As the contract is worth more than the value of Samsung Electronics` annual semiconductor exports, estimated at $10.8 billion, it is expected to greatly contribute to export-boosting efforts.

Samsung Electronics said that Lee Yoon-Woo, president of the company`s semiconductor division, signed a contract with Michael Dell of Dell Computer to enter a strategic partnership in research and development. The contract-signing was held in Austin, Texas.

Under the four-year pact, Samsung will supply Dell with Rambus DRAM, display products such as thin film transistor liquid crystal displays (TFT-LCD), digital versatile disc (DVD)-ROM and CD-ROM devices for installation in personal computers, servers and storage equipment to be developed by Dell.

Moreover, both companies agreed to cooperate closely in the research and development (R&D) sector to provide top quality computer products to Dell’s customers around the world at reasonable prices, officials said.

Park Won-Jae parkwj@donga.com