Samsung and Oak Announce Strategic Partnership
Samsung and Oak Join Forces in Digital Imaging and Optical Storage
SUNNYVALE, Calif., Dec. 20 /PRNewswire/ -- Oak Technology (Nasdaq: OAKT) and Samsung Electronics Co., Ltd. of Korea today announced a strategic partnership that covers a broad range of cooperation between the two companies. Samsung and Oak will jointly exploit each party's expertise, including sharing resources, technical expertise, technology, semiconductor cores and other technology to create leadership solutions for targeted markets in digital imaging and optical storage. The cooperation will initially focus on two specific areas of optical storage:
Samsung to develop CD-RW drives using Oak Controllers
Samsung is developing a line of 8X CD-RW drives using Oak's market leading OTI9790 CD-RW controller architecture. The high level of integration in the OTI9790 allows Samsung to develop high performance, cost effective drives suitable for line fit applications with major PC OEMS.
Oak to license DVD read technology from Samsung
Oak Technology has licensed Samsung's PRML (Partial Response Maximum Likelihood) read channel and RF-Amp technology which the Korean chip maker has already implemented for internal use. The agreement combines Samsung's leading DVD technology with Oak's leading optical storage controller technology.
"We are very excited to have entered into this partnership with Samsung," said Young Sohn, president and CEO of Oak Technology. "This relationship gives us the ability to leverage Samsung's leading expertise and resources in the semiconductor arena as well as one of the world's premier optical storage manufacturers as a customer."
These initial steps are seen as the first in a broader cooperation between the two companies. "Samsung Electronics regards the adoption of the OTI 9790 and the licensing of PRML technology as the beginning of a successful partnership," said Dr. Daeje Chin, Executive Vice President and CEO of Samsung Electronics Co. "We expect the combination of Samsung's technology and Oak Technology's presence and expertise in the optical storage and digital imaging markets to be the basis of an extended partnership. Future cooperation may include Samsung becoming a system on a chip supplier to Oak.
Oak's OTI 9790
The OTI9790 is a technological keystone in Oak's optical storage strategy. It is the latest generation of advanced optical storage technology from a company that has maintained a leadership position in the segment since its founding in 1987. Oak is recognized today as one of the leading suppliers of optical storage controllers for CD-ROM and CD-RW drives worldwide, having sold more than 125 million optical storage controllers worldwide to date. The Company's recent product development efforts in the area have focused on emerging segments such as CD-RW and DVD, both of which are expected to surpass today's widely used CD-ROM technology.
Samsung's PRML Technology
PRML read channel designs use digital techniques to increase the reliability of signal detection from the drive. Over the last five years, PRML read channel designs have been used successfully in magnetic hard disk drives and have been a major factor in the dramatic increase in capacity and reliability achieved by magnetic drives during this period. As the speed of DVD-ROM drives increases, PRML read channel technology will be a critical factor in reliable DVD drive operation. The PRML technique drastically improves the signal-to-noise ratio in the read channel, allowing reliable operation at higher DVD speeds. The technique also allows reliable reading of low quality or damaged DVD discs, enabling DVD players to handle marginal discs; a significant advantage for DVD player manufacturers in the highly competitive consumer space.
About Oak Technology
Founded in 1987, Oak Technology, Inc. designs, develops and markets high-performance semiconductors and related software to original equipment manufacturers (OEMs) worldwide who serve the optical storage, consumer electronics and digital office equipment markets. Oak has subsidiaries in Japan (Oak Technology K.K.); Taiwan (Oak Technology, Taiwan); Andover, Mass. (Oak's Imaging Group); Bristol, U.K. (Oak Technology Ltd.); and Munich, Germany (Oak Technology GmbH). The Company completed its initial public offering in February 1995. Additional information about Oak Technology and its products can be found on the World Wide Web at www.oaktech.com.
The foregoing statements may consist of forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. Factors that could cause actual outcome to differ materially from those set forth include, without limitation, the rate of adoption of new technology, the rate of growth of the inkjet MFP market, market acceptance of the product, competitive pricing actions and marketing programs, among others. For a discussion of such risks, see the Company's most recent SEC Forms 10-K and 10-Q.
NOTE: Oak Technology and the Oak logo are registered trademarks of Oak Technology, Inc., Pixel Magic, Oak Imaging Group, PM-44i and iDSP are trademarks of Oak Technology, Inc. All other product names or company names are mentioned for identification purposes only, and may be trademarks of their respective owners.
SOURCE Oak Technology, Inc.
CO: Oak Technology, Inc.; Samsung Electronics Co., Ltd.
ST: California, Korea
IN: CPR
SU: JVN
12/20/1999 05:30 EST prnewswire.com |