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To: Don Pauley who wrote (51173)	4/20/2000 2:55:00 PM
From: DJBEINO	Respond to of 53903

UPDATE 1-Samsung unveils new chip, sees strong demand (Recasts throughout, adds company executives' comments) By Yoo Choon-sik SEOUL, April 20 (Reuters) - Samsung Electronics Co unveiled a powerful new memory chip on Thursday that it expects to start selling late next year and believes will generate a world market worth more than $40 billion by 2004. The 512-megabit dynamic random access memory (DRAM) chip was developed using 0.12-micron processing technology, which is capable of drawing 900 lines on the width of a human hair, a Samsung spokesman said. Chip makers currently use 0.17 to 0.20 micron technology. ``By successfully applying 0.12-micron technology, we are retaining a one to 1- year technological lead over others,' Hwang Chang-gyu, executive vice president and chief executive officer of Samsung's memory business, told a news conference. Samsung expects the world 512MB chip market to grow to about $41.1 billion in annual revenue by 2004, from a modest $20 million when it debuts next year. The company forecasts it will covet 25 to 30 percent of the total market in around 2004, Samsung officials said. ``Samsung will be supplying most of the world demand in the first few years and, even after the market grows, Samsung will have 25 to 30 percent of the world market share,' said Chung Eui-yong, director of memory marketing. NO IMMEDIATE IMPACT ON SHARES News of the new chip had little impact on Samsung's stock price, which ended up 1,000 won ($0.90) or 0.3 percent at 301,000 won. The closing price is up 13.2 percent year to date and 12.4 times its estimated earnings per share of 24,181 won. The advanced processing technology allowed Samsung to pack 512 million memory cells into a chip the same size as a current 256-megabit chip, meaning computer users can upgrade memory capacity without changing the computer's architecture. That will make upgrades easy, though the company gave no price for the chips, which once packed into a standard 36-chip memory module, will store 128,400 newspaper pages or 256 hours of audio data. Samsung can begin commercial production of the new chips without sharply increasing capital spending from its current plans because it has already secured an extra plant space near its main complex in Kiheung, south of Seoul, Hwang said. He declined to detail investment plans. SAMSUNG SEES HIGHER MEMORY MARKET SHARE Hwang said Samsung would continue to expand its memory chip business while dismissing arguments that memory chips give lower profit margins than other semiconductor products do. ``It's wrong to say memory chips are low value-added products in comparison to non-memory chips such as the CPU (central processing unit) chips,' Hwang said, adding that high-end memory chips still guarantee higher profits. Chung said Samsung's share of the world memory chip market would grow to some 30 percent by 2004 when the world market is expected to reach about $70 billion. Last year, Samsung took a 17 percent share of the $35.4 billion market. Memory chips also include static RAMs and flash memory chips that are used in mobile communications devices. Samsung plans to strengthen its flash memory business, in which world demand is steadily increasing, Hwang said. Samsung ranked eighth in a world flash memory market valued at $4.7 billion last year. It aims to become the world's third largest supplier by 2005, he said. Samsung Electronics, a unit of the Samsung Group [SAGR.CN], is also a leading supplier of active matrix flat panel screens, telecommunications devices and home appliances. ($1 equals 1,109 won) equals biz.yahoo.com