Samsung Banks on R&D for Expansion

December 2003 Issue


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Samsung Electronics will be investing heavily in R&D to leverage its core technologies, such as those used for its memory chips and LCD panels, to develop more innovative end-products and to strengthen its presence in the global market in 2004.

The company plans to invest 6 to 8% of its revenue in technology and product development in the coming year. In 2002, it invested US$2.4 billion, approximately 7% of its revenue, in R&D. Using its global R&D network of nine research centers outside Korea and six Korea-based research centers, the company will continue to drive the development of technologies for telecommunications, semiconductors, digital media and digital appliances.

Digital Natural Image Engine (DNIe) is one of the breakthrough image technologies that Samsung is investing heavily in for its display business over the next few years.

"In 2004, we expect to launch further enhanced DNIe technology across our display categories. Bigger, flatter screens with better picture quality will be the focus," said Kwang-soo Kim, CEO and president of Samsung Asia, who also heads Samsung Electronics.

Kim expects more frequent launches of multimedia-enabled mobile phones with more superior camera functions to create enhanced user experiences in the 3G era. He noted that his company's goal is to take the world's top position in the LCD-TV category outside Japan by next year. DNIe technology is expected to be the key contributor for hitting this target.

OLED, DDR2 Technologies

OLED technology will also take up much of Samsung's focus in 2004. Though this technology is said to be in its infancy, the company plans to develop it to its full potential, particularly as a core technology to support other businesses such as mobile phones and PDAs.

The company is at the forefront with next-generation computer memory chips, dubbed Double Data Rate-2 (DDR2). "We made DDR2 technology a reality for designers of next-generation chipsets with the mass production of the industry's first 1-Gbyte DDR2 dual in-line memory module (DIMM), which is based on 512-Mbit DDR2 components," said Kim. The company plans to boost production of DDR2 to 10% of its DRAM production in 2004.

by Adeline Ong

(December 2003 Issue, Nikkei Electronics Asia)
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