Samsung Electronics Plans to be Top 5 in Non-Memory by 2007

Samsung Electronics, number one in memory semi-conductor, announced to launch non-memory semi-conductor business and rank top five within year 2007.

On a press interview at Shilla Hotel of 27th, Lim Hyung-kyu, president of System LSI (non-memory semi-conductor) talked “Even if preceding companies such as Intel and others dominate non-memory for PC, but after the PC decade non-memory semi-conductor for home & mobile is on the beginning stage.” and added, “Samsung will extend number one items with possessing core technologies.”

Samsung Electronics estimates number one items (sharing more than 25% of the market) such as △ Display Driver IC△ Smart Card △ Digital Multi-function Player, Optical Disc Chip Set △ Mobile camera Chip Set△ Super Speed Communication Networks etc.

He said, “Samsung will achieve annual turnover of 7 billion dollars within year 2005.”

In other words, Samsung has a plan to raise the non-memory business with turnover of 1.4 billion dollars and ranked 20 in the world in the last year to five times bigger size within 2007. The composition of turnover of Samsung Electronics is expected from memory 75% and non –memory 25% at present to memory 60% and non–memory 40% in year 2007.

For the purpose, Samsung invests on high quality human resources domestically and internationally, plans to dominate five items for number one position and reinforces ‘SOC-System On a Chip’ in which market companies compete severely.

Samsung will invest on R&D to establish the infrastructure, and will recruit high quality human resources; 1,600 persons at present up to 2,000 person by the end of this year and 5,000 persons by year 2007. Additionally, it will establish to research centers in US, China, Europe, etc to secure technology and human resources.

It also pursues strategic corporation with 3 or 4 Japanese and European global companies to establish joint venture and consortium by the end of this year. Through the corporation it will reinforce SOC business for home & mobile.

Yeon-Su Shin ysshin@donga.com