Intel & RAMBUS Investors - FASTEN YOUR SEATBELTS - Intel Invests in SAMSUNG !
Intel will be investing $100,000,000 in Samsung in return for convertible bonds which can be converted into 1% of the outstanding shares of Samsung.
The BOLD REASON - RAMBUS RDRAMs !
Here's the announcement - straight from Intel's WEB site !
Paul
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intel.com
Intel Announces Intent To Invest $100 Million In Samsung Electronics
Cooperation for Accelerating RDRAM Supply
SANTA CLARA, Calif., and SEOUL, Republic of Korea, Jan. 20, 1999 -
Samsung Electronics Co. Ltd. and Intel Corporation announced today that
they have signed a letter of intent for Intel to invest $100 million in
Samsung Electronics. In the proposed deal, Intel will acquire convertible
bonds exchangeable for common stock representing approximately 1
percent of Samsung Electronics' outstanding common stock. Samsung
Electronics will use the proceeds from this investment and additional funds
to invest in Direct RDRAM fabrication, assembly and test. Samsung is
already shipping sample Direct RDRAM devices and is ready for volume
production in second quarter of 1999.
The proposed deal is subject to the approval of Intel's and Samsung
Electronics' board of directors, Korean government approval, and
agreement on definitive documents. Full approval is expected by the
beginning of February.
The proposed investment in Samsung Electronics is part of Intel's strategy
to support the supply of next generation memory products. The goal is to
help drive PC industry growth by accelerating the adoption of Direct
RDRAM memory technology. Intel believes that Direct RDRAM memory
technology can help enhance balanced PC system performance as
processor performance increases and more and more multimedia and 3-D
functions are used.
"Samsung is committed to be the leader in development and production of
Direct RDRAM technology to support the needs of Intel and OEM
customers," said Yoon-Woo Lee, president and CEO of Samsung
Electronics' Semiconductor Business. "From a PC industry perspective,
it's important for memory technology to move ahead as quickly as
possible. We are pleased to be working with Intel on this next-generation
technology and look forward to working with them on future technologies."
"This investment continues our long relationship with Samsung, the world's
largest supplier in the memory market segment." said Patrick Gelsinger,
vice president and general manager, Desktop Products Group at Intel.
"With this investment, our goal is to help ensure an adequate supply of
Direct RDRAM for the personal computer market segment over the next
few years."
Samsung Electronics Co., Ltd., with 1998 sales revenues of approximately
$17 billion (U.S.) is a world leader in electronics, with operations in more
than 50 countries and 60,000 employees worldwide. The company
consists of three main business units: Multimedia & Home Appliances,
Semiconductors and Information & Telecommunications. For more
information, please visit our Web site, www.samsungelectronics.com
Intel, the world's largest chip maker, is also a leading manufacturer of
computer, networking and communications products. Additional
information about Intel is available at www.intel.com/pressroom. |
