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Samsung outlines lofty IC, consumer goals

Posted: 04 Nov 2005 ?? ?Print Version ?Bookmark and Share

Keywords:korea? samsung? semiconductor?

In what could be an effort to improve its tarnished image at home, Samsung Electronics Co. Ltd. outlined its future and ambitious goals to invest in South Korea and elsewhere. As part of those efforts, the company hopes to generate $61 billion in semiconductor sales and own 24 domestic fabs by 2012.

At an analyst meeting in Korea on Thursday (Nov. 3), Samsung also said it hopes to become the leading producer of all-in-one mobile phones and will aim to reach $20 billion in liquid-crystal display (LCD) sales by 2010.

The company also wants to become "one of the top three electronics companies in the world in quantity and in quality by 2010, by increasing the number of our leading market share products from the current eight to more than 20 products and also by more than doubling our 2004 sales," said Jong Yong Yun, vice chairman of Samsung Electronics, in a statement.

In a release, Samsung listed its five major goals:

  • Double its 2004 sales revenue by the year 2010.

  • Have 20 number one market share products in the world by 2010.

  • Identify eight new growth engines, including digital television (DTV) products and printers.

  • Pursue innovation throughout all six main areas of the company's business operations.

Yun identified eight growth engines which Samsung will focus on: storage memory chips, next-generation displays, mobile telecommunications, digital TVs, printers, system LSIs, mass storage and air control system.

With aggressive business plans tailored for each sector, Samsung Electronics also pledged to do what is necessary to increase its value for shareholders.

Still some believe that Samsung's announcements are diversionary tactics to lessen its public relations problems and "scandals" at home. Samsung has many critics in South Korea, who claim that the conglomerate has become too powerful. At times, Samsung attempts to silence its critics, saying it represents 15 percent of Korea's overall economy.

But some even speculated that Samsung attempted to distract its public-relation troubles at home by recently announcing a $33 billion semiconductor expansion program.

In the semiconductor sector, Samsung said it plans on achieving $61 billion in sales with 24 domestic chip plants by 2012. It also intends to invest abroad A Samsung Electronics site selection committee has recommended Austin as the location for a 300mm memory fab, with an estimated investment of $3.5 billion.

Meanwhile, the company is have an assortment of problems at home. In September, the Samsung Group conglomerate said that it hopes to reach a compromise with the South Korean government over its controversial corporate governance practices.

Last month, two executives from the Samsung Group were found guilty by a lower court for allegedly arranging illegal stock transactions to help the company chairman transfer his wealth to his only son, according to press reports in Korea.

Also last month, South Korean chip maker Samsung pleaded guilty to federal price-fixing charges and has agreed to pay a $300 million fine.

- Mark LaPedus

EE Times

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