Samsung Electronics
Ushers in 'NAND PC Era'

Begins to supply large numbers of NAND flash memory products to two global PC makers

Samsung Electronics, the global NAND flash memory industry leader, has begun to supply large numbers of NAND flash memory products to two global PC makers, heralding the full-fledged launch of a 'NAND PC Era.'The global PC producers are set to release notebook PCs, fitted with NAND flash memory chips instead of the conventional hard disk drive next month, industrial analysts predict.
Samsung Electronics made a splash last year by supplying NAND flash memory chips to Apple for the production of its MP3 player "iPot Nano."Samsung Electronics"supply NAND flash memory chips to the two PC makers will be like "the goose that lays the golden eggs,"industrial analysts predict.
A senior Samsung Electronics official said on May 11 that shipments of Solid State Disk (SSD), a NAND flash memory chip used for PCs, were made to two PC giants in Asia among the seven global PC makers, and the PC makers plan to introduce NAND flash memory-imbedded notebook PCs next month. SSD was unveiled for the first time during Samsung Mobile Solutions Form 2006 held in Taiwan on March 21.
The PC makers which dominate the global PC market are Dell, HP, Apple, Fujitsu, Toshiba, Renova of China, and Acer of Taiwan.
The value of the SSDs, to be supplied to the two Asian PC makers, is estimated at approximately $538 million, which is still negligible compared to the $24.8 billion DRAM market and the $10.7 billion NAND flash memory market. The reason for the still-emerging SSD is that PC makers are reluctant to adopt SSDs that fetch higher prices. However, the SSD has such strong points as a three-fold read speed and a 1.5-fold write speed compared to the existing hard disk drive, lighter, easy-to-carry and lower electricity consumption.
Industrial analysts forecast that the SSD market will surge to $4.5 billion four years later in 2010 and since the first launch this year; SSD-imbedded PCS are likely to take a 30 percent share in the global hard disk market.
Other PC makers are expected to jump into the NAND flash memory notebook PC market, so the global PC market is likely to be restructured to give way to NAND flash memory-type PCs, they said, adding that more PC makers'rush into the NAND flash memory market would prompt a plunge in chip prices.
Warning against Faster-Than-Expected Restructuring of NAND Flash Memory Industry
Samsung Electronics focuses on jumpstarting quality products and technology development
Samsung Electronics Semiconductor President Hwang Chang-kyu has warned that the global "NAND"flash memory market will experience restructuring faster than expected, saying that companies which lag behind technology and cost competitiveness are likely to be forced out of the market.
Hwang made the remark during a meeting with reporters at Samsung Electronics semiconductor division plant in Giheung, Gyeonggi Province on May 4. His remark has attracted a keen attention as global semiconductor giants like Intel and Toshiba have scrambled for boosting investments into the NAND flash memory sector.
Since the early 2006, NAND flash memory prices have shown signs of a plunge. Examples of applications include such IT storage devices mobile phones, game gadgets and digital cameras. The NAND flash memory market has been expanding, but global semiconductor producers'heated competition in production of the NAND flash memory chips has pushed down prices on the global market.
Samsung Electronics President Hwang said, "In the past, a look into the DRAM sector in the showed that the days have come when companies lacking a competitive edge and technology have been forced out of the market in the weaken of an expansion of the market, and the NAND flash memory sector is predicted to face restructuring faster than the DRAM sector did."His prediction is that coupled with faster development cycles of new products and technology, a rapid expansion of the NAND flash memory market will likely heat up completion, so restructuring is expected to proceed at a faster pace."In recent years, Intel and Micron have joined forces to enter the NAND flash memory market, while Toshiba has pushed ahead with massive investments into the sector.
As to the recent development of rival companies, Hwang said, Samsung Electronics will square off with them by jump-starting quality product and technology development and cutting down on costs. nw

Samsung Electronics Semiconductor President Hwang Chang-kyu