Samsung Electronics, Micronas Agree to Co-develop Chip Sets for TV (0119)

• Tie-up between chip set makers aimed at producing the world's best systems for next-generation TV signal processing
• The video signal processor, audio signal processor and micro controller will all be on the same chip
• Core components that are competitive in both price and function will be developed to dominate the TV market
• A"win-wi" approach ensures a stable supply of competitive components to a committed buyer

SEOUL, Korea and FREIBURG, Germany - August 28, 2001 - Samsung Electronics, a major player in the global TV market, has formed a strategic alliance with Germany's Micronas GmbH, a world-class developer of essential semiconductor chips for consumer electronics, multimedia and automotive electronics. The partners will co-develop chip sets used in next-generation TVs. Samsung Electronics Vice-president Choi Gee-Sung, who is the chief of the Video Display Division, joined the Micronas group's CEO Dr. Wolfgang Kalsbach in Berlin for the official contract signing on August 27.

Specifically, the two companies plan to develop chips that cost less to produce than what are now available and that are multi-functional, by combining the video signal processor, audio signal processor and micro-controller. Samsung will take part in the development work from product definition until completion, including evaluation and approval. This arrangement will help Samsung to produce next-generation TVs that are highly competitive. Additionally, Micronas will benefit by securing a steady buyer of newly designed chips. Samsung Electronics Division is exploring the possibility of fabricating the jointly developed chips on consignment.

The tie-up of a TV system maker like Samsung and a TV chip set maker such as Micronas is in response to a highly competitive TV market. Strong competitiveness in both price and quality are now imperative for business survival.

The world TV market stands at 120 million units per year. Samsung holds a 10% share, selling 12 million units annually.

In 1970, Samsung mass-produced its first black-and white TVs, with color TVs going into mass production in 1976. The company began selling digital TVs in 1998, a full six months ahead of anyone else.

Micronas leverages on many years of proven outstanding expertise in developing ICs dedicated to the specific requirements of TV applications. Today the company is known as a highly innovative system provider offering the industry's broadest range of flexible and cost-effective systems-on-silicon. Micronas' unique multistandard signal processors enables TV manufacturers to design highly competitive products to address the global market.

Samsung's leading position as a global player in the consumer market perfectly matches Micronas' intimate knowledge in creating highly complex systems-on-a-chip. Samsung and Micronas plan to continue strengthening their new partnership in the days ahead.
 

Press photo

Samsung Electronics Vice President Choi Gee-Sung (left) and Micronas CEO Dr. Wolfgang Kalsbach at the official contract signing

About Samsung Electronics

Samsung Electronics Co. Ltd. is a global leader in semiconductors, the consumer electronics industry, and digital convergence technology. With year 2000 sales of US $27 billion, Samsung employs approximately 66,000 people in 46 countries. The company is the world\'s largest producer of memory chips, TFT-LCDs, CDMA mobile phones and monitors and the sixth-largest manufacturer of mobile phones. Samsung Electronics consists of four main business units: Digital Media, Semiconductor, Information & Communications, and Home Appliance Businesses. For more information, please visit http://samsungelectronics.com.