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Samsung Now Bigger Than Nine of Japan’s Major Electronics Companies

And you thought Samsung was big enough already since it accounted for more than a fifth of Korea’s GDP.

The Wall Street Journal reports that Samsung Electronics’ operating profit, at $3.14 billion, is more than two times larger than the combined operating profit of nine of Japan’s largest consumer electronic companies.  Samsung now has a $7.4 billion war chest to spend on growth and R&D where many of the Japanese companies are at an operating loss (Sony) or in huge debt (Hitachi).

Most analysts agree that the single biggest contributing factor is the relative weakness of the won and the relative strength of the yen.  Some may think that the won get’s unfair treatment in worldwide currency markets, but many Japan analysts believe that the yen also get’s unfairly valued.  The yen, rightly or wrongly, is considered a “safe” currency in these troubling times and that’s what’s driving up its value.

At the end of the day, Korean companies like Samsung are getting a boost in grabbing worldwide market share and many Japanese companies are crying uncle, wondering if the government will step in to relieve some pressure on what could be an overheating yen.

Update: Chosun Ilbo warns of complacency at Samsung.  Canary in the mine shaft?  A half million shoddy refrigerators build in China that had to be recalled.

  • cm

    Are you sure it’s the low Korean currency which is the reason? Samsung, known as Samsuck in many expat circles beat up on Sony in market capitalization, beginning of 2004. It’s been a steady decline for the Japanese electronic makers, and rising tide for the Korean electronic makers. This has been the trend for the last 9 years, well before the Korean currency devalued 35%.

  • http://www.korealawblog.com Brendon Carr

    I think “Samsuck” is merely childish name-calling without foundation. Samsung makes good stuff.

    By the way, I’d like to note that I am still using the Goldstar (LG) microwave oven I bought for $120 at the Osan AB BX waaay back in October 1990. That’s 19 years and counting — surprising durability! And very thrifty.

  • Arghaeri

    Take a step back, it’s current operating profit is bigger than the nine companies, not it is bigger than the nine companies. Yet.

  • Koreansentry

    Most of Samsung’s products are not made in Korea anymore. They are made in China, Indonesia, Thailand, Ireland, Spain, Portugal, and Philippine & Mexico etc.. low Korean currency may help Samsung operating from Korea, but not that much. Every time you guy Apple’s iphone/ipod, Sony, Panasonic, Chinese no name electronics, etc.. you are buying Samsung as well because Samsung sells their components to these nine Japanese electronic companies as well as world wide computer, printers, photocopier, cameras, phones & TV makers etc..

  • Koreansentry

    Btw, Samsung is also the largest importer in Korea, they will still make money from buying foreign products when Korean currency is on the rise.

  • R. Elgin

    . . . I am still using the Goldstar (LG) microwave oven I bought for $120 at the Osan AB BX waaay back in October 1990. That’s 19 years and counting — surprising durability! And very thrifty.

    Oddly enough, I inherited a 1996 LG Goldstar color TV that is still in excellent shape and has great color, though the connection ports in back are all in Korean. I suspect this was the golden age for LG electronic products.

    Though Samsung LCD and memory are excellent, many of their home appliances are pure crap, from an engineering viewpoint. I had one of their largest air filters and though it looked good on the outside, the inside was poorly designed. It was impossible to take it apart enough to clean it properly. That is why I replaced it with a Sharp product which is easy to clean and maintain.

  • cm

    I have to disagree.

    I’ve just moved into a new place, and I just bought a Samsung fridge, a Samsung dish washer, and Samsung washer and dryer. The best and the quietest appliances I’ve ever had. I have never bought Samsung appliances until now. They now sell high end stuff, and if low Korean currency is supposed to be a factor, I haven’t noticed it. Because the most expensive models often are Samsung and LG.. I remember when LG came out with red colored fancy looking Tromm washer/dryer machines few years back that cost couple of grand. Now everyone is copying the same style, and the prices have sunk like a rock. The Samsung washer makes a melody when it finishes washing, and my jaw dropped at how short time it takes to dry the clothes. I’ve never had anything that dried clothes that fast in less than 15 minutes flat.

  • gbnhj

    Since we’re comparing appliances, my Samsung ‘Mr. Chef’ microwave, purchased in March 1992 by my wife before we got married, is still going strong. After all these years, it’s been moved to my office, but it gets a daily workout and still operates without a hitch.

  • http://adamsawry.wordpress.com Adams-awry

    cm, you trolling? Post #1 it’s ‘Samsuck.’ Post #7 it’s ‘The best and the quietest appliances I’ve ever had.’ You’re full of shit.

  • http://throughwhiteyseyes.blogspot.com whitey

    Reading about the size of Samsung, it occurs to me that America’s “Too Big to Fall” is Korea’s “Too Big to Go to Jail.”

  • PineForest

    Good products, yes. Absolute gangster thuggery as the beat, maul, and dismember their way through the domestic economy , tho, too. I will never buy their stuff because they personally screwed me too hard when I consulted for them. Lifetime boycotts are all the little guy has…sniff…

  • PineForest

    as THEY beat, maul..etc..

  • http://www.xanga.com/wangkon936 WangKon936

    @ #10,

    I disagree! Regardless of how big you are, you still need a wheelchair!… ;)

  • http://www.xanga.com/wangkon936 WangKon936

    @ #11,

    It’s like an ant hitting the Statue of Liberty!

  • http://www.xanga.com/wangkon936 WangKon936

    @ #4,

    Most of Samsung’s growth has been in LCD TVs and chips and most of those are built in Korea.

  • cmm

    “Every time you guy Apple’s iphone/ipod, Sony, Panasonic, Chinese no name electronics, etc.. you are buying Samsung as well because Samsung sells their components to these nine Japanese electronic companies as well as world wide computer, printers, photocopier, cameras, phones & TV makers etc..”

    Samsung’s component business, although having possibly a record year in sales, is small compared to Japanese component companies.

  • lollabrats

    “Some may think that the won get’s unfair treatment in worldwide currency markets, but many Japan analysts believe that the yen also get’s unfairly valued. The yen, rightly or wrongly, is considered a “safe” currency in these troubling times and that’s what’s driving up its value.”

    A JP Morgan Chase report says that Japan’s total-government-debt-to-GDP ratio is nearing 200% (IMF says 218% by year’s end, 227% next year, and 246% by 2014) and is on a trajectory to reach 300% by 2019, which is one of the problems Hatoyama was voted in to fix. Meanwhile, ROK’s Ministry of Strategy and Finance says that the Korean government’s ratio is expected to reach almost 50% by the end of the year, after which, the Koreans may be able to lower it to about 30% by 2012. And yet, the won fluctuates with the wind while there is great confidence in the yen, even though Japan is seemingly in a much worse shape than the US, which will only reach 100% sometime in the next 2 years. This says so much about how much further the Koreans have to go to become an “advanced” economy themselves.

    Incidentally, Japan actually defaulted on its sovereign debt not that long ago, in 1945, when their ratio last neared 300% and their means of production were destroyed. I am actually curious to see what would now cause people to turn away from the yen. I am also curious to see whether, after the world decides that the yen is too risky, the Japanese will, paradoxically, see an opening to create large numbers of manufacturing jobs for themselves.

  • lollabrats

    “Most of Samsung’s growth has been in LCD TVs and chips and most of those are built in Korea.”

    When the bottom of DRAM prices disappeared over several quarters, Samsung had to absorb the massive losses. But because Samsung has other profitable divisions, they were able to ride the economic crisis better than the Taiwanese. I wonder if Samsung will be able to take advantage of the crisis to maul the Taiwanese over the next couple of years.

    Also, it seems to me that one of Samsung’s most successful strategies of the last half dozen years has been to eschew the top technology of the panel and semiconductor markets in favor of pursuing technologies that maximize price per performance. For instance, even though Pioneer’s Kuro and LG’s IPS panels are superior to Samsung’s PVA, the PVA technology is cheaper and still performs well. Likewise, American companies, such as Micron and Intel, make superior memory chips, but Samsung’s chips sell well.

  • lollabrats

    “I wonder if Samsung will be able to take advantage of the crisis to maul the Taiwanese over the next couple of years.”

    I meant to say that I wonder by how much Samsung will take advantage of the devastation of the Taiwanese industry. And how well the Taiwanese well respond.

  • cm

    JD Powers names Samsung and LG as top brand appliance makers in US customer satisfaction, 5 years straight.

    http://news.naver.com/main/read.nhn?mode=LSD&mid=sec&sid1=101&oid=016&aid=0000316447

    The favorable exchange rates is only a small part of the equation. Without the quality of products, they cannot be in the same position as they are now – it’s a complete turn around from several years ago when Samsung was known as “Samsuck”, and Korea was known as “Land of the not quite right” with their shoddy products.

  • Mizar5

    PineForest:”Good products, yes. Absolute gangster thuggery as the beat, maul, and dismember their way through the domestic economy , tho, too. I will never buy their stuff because they personally screwed me too hard when I consulted for them. Lifetime boycotts are all the little guy has…sniff…”

    I worked for Samsung too and also don’t buy Samsung products, since there are equivalent or better domestic or Japanese alternatives.

    My comment here is that for years Koreans railed against the Japanese for war profiteering and getting rich at the expense of Koreans during the war. Korean companies are now guilty of the same tactics – taking advantage of a US economic crisis to increase market share. It’s easy to be righteous and indignant about what the Japanese do, but not so easy to criticize oneself for being in fact no better.

  • 8675309

    I worked for Samsung too and also don’t buy Samsung products, since there are equivalent or better domestic or Japanese alternatives.

    FYI, having tutored junior Samsung execs in the ABC’s does not qualify as having worked for Samsung. And about that last part, when was the last time you went to Best Buy or Wal-Mart to buy a DVD player/flat screen/cellphone? If you’re looking for the right mix of the ‘four p’s,’ pretty much everything in that category is Korean made. Be prepared to shell out extra for a Sony and other Japanese brand names that no longer automatically mean better quality.

  • Mizar5

    86, I can honestly say I have never tutored junior Samsung execs in the ABCs. I was General Manager of Marketing.

    I also disagree with your assessment on electronics. There are numerous alternatives that are as good or better in quality that don’t cost that much more. In fact, the SONY Bravia makes a model expressly for Sam’s Club that won’t cost you more and is just as good. Cell phones, autos, DVD players, monitors, etc – plenty of alternatives exist.

  • Jing

    I’ve only had one experience with an LG product and it was a disaster. I am avoiding them from now on, as they seem more style over substance, like a certain other consumer goods company coughApplecough. Last year, I replaced a refrigerator because of a faulty freezer coil that was causing frost build up in the back of the fridge. I settled on a fairly fancy looking French door freezer on the bottom configuration refrigerator from LG which was really quite competitively priced compared to similar offerings. Unfortunately the first time they shipped the fridge, it didn’t even work! I had to wait over a weekend before Sears could send someone over to fix it. Apparently the manufacturer had omitted some mayor components in the construction of the fridge and it was a lemon! I had to wait a few weeks before Sears could send me another replacement fridge of the same model and guess what, another lemon that failed to cool anything. In the end, I finally just opted out of that model in frustration and went with a Kenmore model fridge instead. If it was simply a toaster, I wouldn’t have been so angry, but this was a huge honking refrigerator that required constant visits by deliverymen and repairmen and dozens of phone calls to finally get the issue settled. Consumer satisfaction my ass, screw them.

  • StevieBee

    I have a Goldstar fridge-freezer that’s big enough for me to climb into and I never hear so much as a peep out of it.

    I also have a Samsung mp3 player which I care for deeply and a cellphone that the Samsung service centre fixed for free, even though I broke it through my own idiocy.

    So in conclusion, we’ve never had it so good. Though things were also good in the past.

  • Jewook

    I have a projection TV and kimchi fridge from LG and used to have monitor from Samsung, all very reliable and long lasting. Though about eight years ago I got an LG DVD/VCR which was a total piece of crap. After that I find myself shying away from anything LG. When it came down to buying an LCD TV for my bedroom I think both brands are unnecessarily expensive. I got one from little Erae, quality is good enough I say, did break down once after two years but it still was a lot cheaper even after paying for repairs. And I have a fridge from Whirlpool, don’t understand why Korean fridges don’t have a ice dispensers, an absolute convenience I must have. The price for the import was reasonable also.

  • cm

    I have an 42″ LG flat panel TV which I bought over 3 years ago. I must admit I was concerned with quality due to all the negative public perception about Korean products being shit quality. I took a chance because at $2000, it was a bargain at that time. The picture is crystal clear to this day and has given me zero troubles – breaking my Korean products phobia. Recently I looked around for another TV, and I noticed the big chunk of the sales floor seems to be dedicated to Samsung’s and LG’s, while the Japanese makes seem to be less pricier but also far less visible then the years past.

  • DLBarch

    The “Samsuck” days are definitely over — Samsung now makes genuinely top-grade consumer electronics products, and has for at least a decade, though its touch-screen phones (offered here through Verizon) are still widely seen as sub-par.

    Interestingly, at Samsung Electronics/SSI here in Silicon Valley, the prevailing view is that Samsung’s main competition is no longer Japan but rather Taiwan. The people I talk to at SSI are absolutely obsessed with Taiwanese telecom and electronics makers.

    The prevailing view in the Valley, though, is that as good as Samsung products are, the company itself is a decidedly less appealing place to work than, say, LG or Hyundai. For whatever reason, LG and Hyundai are seen as foreigner-friendly, while Samsung is seen as a place where careers go to die.

    A (now repeated) pattern of laying off long-term American employees without any severance while keeping Korean staff on salary also doesn’t help.

    DLB

  • http://www.xanga.com/wangkon936 WangKon936

    … and what does koreangov twitter say?

    Dear Japan: We gonna do the cars and electronics from now on. You just stick with the porno. Sincerely, Korea.

  • cmm

    This link, which JW just posted in the last Open Thread, describes what I mentioned @16 very clearly.

    http://www.economist.com/displayStory.cfm?story_id=14793432&source=hptextfeature

    A few years ago, I went through the Japan Steel Works plant mentioned throughout the article, all the way down to a tour of their crystal making and samurai sword forging facilities, the latter of which is located in a quaint village-like area up in the mountains overlooking their impressive plant. The experience, from seeing some of the largest, most impressive, steelworking equipment in the world going to work, to seeing them hammer out the samurai swords old-school style, was the most impressive and fascinating factory tour I’ve ever experienced. Since I was their potential customer, the elaborate dinner followed by drinks at a room salon-type place (alas, no 이차) which they treated me to was a nice way to finish off the day.

  • Koreansentry

    Mizar5 November 5, 2009 at 11:40 pm

    86, I can honestly say I have never tutored junior Samsung execs in the ABCs. I was General Manager of Marketing.
    —————————–

    Prove it.

  • cm

    cmm, undoubtedly the Japanese are ahead in parts making. But it’s the general trend that is significant. There is no guarantee that the Japanese parts makers will not suffer the same fate as Sony, Panasonic, Sharp, etc., and that the flying geese theory will always be in place. That’s because Koreans are also catching up very quickly in the parts industry as well, as Korean parts makers increase market share..

    http://media.daum.net/economic/others/view.html?cateid=1041&newsid=20090728093206928&p=ned

    Thirty percent of components in iPhone and Blackberry RIMS have Korean made parts

    http://media.daum.net/digital/it/view.html?cateid=1077&newsid=20090909110715794&p=ak

    Also that Economist article’s bottom paragraph shows the vulnerability of Japanese medium sized/small companies who rely too much on big Korean customers who are virtually monopolizing the memory chips and consumer electronics. The article’s example of Samsung switching parts outsourcing from a Japanese company to a Dutch company illustrates how vulnerable Japanese parts makers are. Samsung may have done this knowing full well that their defection to the Dutch could put those Japanese parts makers who have lost the most important client, in financial trouble. Later, Samsung may come to the rescue of those Japanese companies and buy them out.

  • cmm

    Yes, the trend, especially in the large electronics companies, has been in favor of the Koreans at the expense of Japland. Here’s my prediction though. Just as the Japanese took the industry from the USA, now it’s moving into Korean hands, and give it some years… it’ll be all China’s.

    The electronics industry is just one of the industries that seems to be on this path. The auto industry seems to be, shipbuilding too (though not sure that the USA was ever a huge player here).

  • commander

    #18 lollabrats said:

    Likewise, American companies, such as Micron and Intel, make superior memory chips, but Samsung’s chips sell well.

    This is blatantly false. Samsung’s chip technology is second to none.

    First, Intel doesn’t even make memory chips.

    Samsung is 1 generation and 6-12 months ahead of Micron in DRAM technology. That in the memory business means massive profits for Samsung, as you can see in their last 2 earnings reports, while Micron struggles with commodity pricing. Samsung is about 1 generation ahead of Korean rival Hynix and Japan’s Elpida, too, and 2 generations ahead of the Taiwanese. In fact, Samsung and Hynix are clearly #1 and #2 in the world DRAM market. Samsung is the runaway #1 in NAND Flash memory, all the storage you need for your iPod/Phone and cell phones. They are 1-2 generations ahead of the competition there too.

    From a technology standpoint, Samsung clearly doesn’t suck.

    From a business dealing point of view, especially if you are their supplier, yes, Samsung sucks big time. But they are the biggest game in town and they make the rules.

  • http://www.sperwerslog.com Sperwer

    But they are the biggest game in town and they make the rules.

    What goes around, comes around.

    By playing by its own “rules”, rather than (int’l) rules of honest commercial practice, Samsung is setting the stage for its own comeuppance (both domestically and internationally)

  • http://www.xanga.com/wangkon936 WangKon936

    Commander,

    Intel doesn’t make memory chips because it’s kinda hard to make money off them… so Intel focuses on processors.

  • commander

    #36 Yes, Intel wisely hasn’t made memory chips since the 1980′s and has focused on the microprocessor, which has made them the biggest semiconductor company in the world overall. Samsung is second in overall chip sales.

    #35 I don’t necessarily think Samsung is unethical with its suppliers, just brutally tough.

  • http://www.sperwerslog.com Sperwer

    #35 I don’t necessarily think Samsung is unethical with its suppliers, just brutally tough

    same lesson nevertheless applies; (how many people weren’t sorry to see Lehman Bros fold?)

  • dry

    #36: Well, you can consider their SSD division an extension of what was left of their team that worked on memory, and they’ve invested quite a bit of money into it (currently their drives are on par, if not superior, to Samsungs). A big market, and they’ve been saving their ammo for this.

    #35: Honest commercial practice? No such thing, at the very least all major American corps try to break as many rules as they can get away with, and man, they are the best at it.

  • http://www.chiamattt.com chiamattt

    Korea is doing well making home appliances and electronics…but the machines that make those home appliances and electronics are, for the most part, still coming to Korea from Japan, Germany, and the US.

  • http://www.korealawblog.com Brendon Carr

    My comment here is that for years Koreans railed against the Japanese for war profiteering and getting rich at the expense of Koreans during the war. Korean companies are now guilty of the same tactics – taking advantage of a US economic crisis to increase market share. It’s easy to be righteous and indignant about what the Japanese do, but not so easy to criticize oneself for being in fact no better.

    How ridiculous. Korean companies are “guilty” of offering US consumers high-quality goods (or good-enough quality goods) at prices attractive to their pocketbooks? What fiends.

  • Mizar5

    Koreansentry: “Prove it.”

    To whom? Some troll who calls himself Koreansentry?
    Go ask Dram Man.
    Now that you’ve humiliated yourself yet again, go crawl back under your rock.

  • commander

    #38 Not too many suppliers for Samsung would be dancing on their grave if they went under. It would be catastrophic to the Korean and global economy, actually. Samsung Electronics has been the world’s #1 capital expenditure company for the past 7 consecutive years in the semiconductor and LCD industry. We’re talking 6 or 7 BILLION US Dollars per year spent on facilities and equipment, yet still making a nice profit. The memory chip industry is extremely competitive and Samsung is the best in the business.

    My comment about how Samsung Electronics is tough on its suppliers really is more an observation than a legitimate complaint. Overall they are ethical and fair. I don’t think they are any worse customer than say a Walmart.

  • http://www.xanga.com/wangkon936 WangKon936
  • lollabrats

    @commander

    >”First, Intel doesn’t even make memory chips.”

    For obvious reasons, Intel makes high quality controllers. They go well with Intel’s high quality NAND products. Obviously, I meant that Intel makes flash memory and not volatile memory. Intel produces NAND products in a joint venture with Micron under the name IM Flash Technologies LLC.

    >”From a technology standpoint, Samsung clearly doesn’t suck.”

    Look, neither I nor Mr. cm is saying that Samsung “sucks.” I think the use of “Samsucks” in post #2 above has wrongly colored the discussion and has led to misunderstandings. I think it is clear by Mr. cm’s contributions above that he has been attempting, in describing his own experiences in buying Korean products, to describe the monumental shift in global consumer perception of Samsung’s and LG’s brand values that has occurred in a pretty short period of time. What I was trying to do was to highlight a successful decision Samsung has made in recent years; unfortunately, I did it horribly wrong.

    The reason I did it wrong was because I tried foolishly to merge two different things and you rightly called me on it. And I thank you for that. On the one hand, I think it is clear that Pioneer’s Kuro Elite plasma line was the top panel technology of the lcd-plasma era. And I think it is clear that the IPS technology was the top lcd panel technology of this period. But Samsung’s PVA were, for whatever reason, cheaper to make and were superior to the TN technology. On this point, you seem to agree. Where I failed is when I became over-greedy and tried to hook their chips division into the same argument. And I knew, even as I clicked “submit,” that I was stretching the truth for no good reason. That is because the market competition in die shrinking and chip designing cannot be compared to Samsung’s decision to develop PVA panels and eschew IPSs and plasmas.

  • lollabrats

    >”In fact, Samsung and Hynix are clearly #1 and #2 in the world DRAM market.”

    Bringing out Samsung’s market share as an argument against what I posted does not quite work, since I was trying to give one reason for their meteoric rise and success.

    Consider that, although PVAs will never outsell cheap TNs, they will in turn outsell IPSs and plasmas. In fact, the same year Pioneer introduced a Kuro model whose black was so perfect you couldn’t even tell that in a dark room the screen was even turned on was the very same year Pioneer stopped making plasma televisions due to cost. In essense, developing the PVA allowed Samsung to corner the market in the lowest costing good quality panel technology. This was a key reason for their recent success in my view. And going forward, I think many people are expecting history to repeat and that Samsung will beat out Sony to dominate the AMOLED era (along with LG), in which case, it will own both the most desired technology of the next era and the market share. But the point is that just because you have the biggest market share does not necessarily mean you are producing the top technology. Furthermore, not having the top technology does not in any way demean a company if that company can produce an inferior, but cheaper, product and still dominate the market with it.

    Likewise, the last half dozen years in the DRAM market saw the establishment of Samsung as the dominant player. I have personally bought 30 gigs of DDR2s, most of them last year, when manufacturers sold them at great loss and you could find 2x2gig sticks at around $9-13! Obviously, Samsung was in a terrific position to let the financial disruption devastate the market and still come out stronger than ever. I know that all the ones I bought last year are rebranded Samsungs, but I only overclock a little and tighten to 4. During the DDR2 era, did you really believe that Samsung’s best binned DDR2s consistently outperformed Micron’s? Anecdotally, it seemed to me that kids who cared about achieving the tightest timings at the highest speeds would occassionally search out specific rebranded oem models just to try out a specific bin of high quality cheap Microns. But I don’t recall anyone similarly seeking out a specific pair of Samsungs.

    At any rate, I don’t understand why Samsung even wants to be in the DRAM market. It just seems like it is going to ultimately be a money losing endeavor. I mean, I’m hoping that the DDR3 market is going to crash and burn next summer like DDR2′s did last year. Do they really think that they will be able to make profits long term here as they do making low priced good quality optical drives?

  • lollabrats

    >”This is blatantly false. Samsung’s chip technology is second to none.”

    >”Samsung is the runaway #1 in NAND Flash memory, all the storage you need for your iPod/Phone and cell phones. They are 1-2 generations ahead of the competition there too.”

    In Q3, 2009, Samsung’s share in the NAND market was around 38.5%, followed by Toshiba at 34.7%. Micron was in a distant third at 9.4%.

    Incidentally, according to Anandtech, Intel’s X25-E may be the current top performer among SSDs (today is Nov 5, 2009) in terms of sequential and random read and write speeds. Even South Korea’s Indilinx probably makes better performing SSDs than Samsung. In fact, even against Intel’s older models updated with TRIM, the Samsung SSDs are only superior on sequential write speeds. By comparison, Samsung’s random read and write speeds are atrocious.

    By the way, what do you mean by your comment that Samsung is 1-2 generations ahead of their competitors in the NAND market? By “generation,” are you referring to die shrink? Because Intel’s chip is based on a 34nm process and came out this summer. I don’t know if there was some issue with latency or what, but Samsung completely botched its 32nm launch this fall. Meanwhile, Intel is already readying their sub-30nm part. Even Toshiba has a 32nm part.

    Next year, IM Flash Technologies is going to enter the server SSD market and it should already have begun mass-producing its tiny 32gigabit chips for flash cards, mp3 players, and cell phones. Intel is no Sony; Intel, with Micron, intends to dominate the NAND market and they have a good chance of succeeding. They certainly have the expertise and the capital to do it. And as we enter the SATA6G era, I think the Intel vs Samsung NAND battle is going to be a much more interesting contest for Korean industry watchers than possibly even Sony vs Samsung vs LG in OLED.

    Furthermore, Intel might be ahead of Samsung in developing Phase-change memory technology, if we may infer anything from recent reports on Intel’s break-throughs there.

    All in all, I don’t necessarily know that there is a reason to feel all that safe about Samsung’s position in the non-volatile memory sector, even with its giant lead over the Americans.

  • lollabrats

    I say all the above, even though Samsung actually increased their NAND market share from the second quater and Intel’s actually fell half a percentage point to 6.5% at fifth place behind even Hynix at 8.7%

  • http://koreanamerican431.blogspot.com/ baduk

    I wonder
    1) how much royalties Samsung is paying to Japanese corporations.
    2) what % of Samsung stocks are owned by the Japanese. Lee GunHee owns less than 5%.

    Real money is flowing to Japan while Koreans are sucking the pie in the sky. Japan is using Samsung brand name to make money from the Chinese and the Europeans, some of whom still have anger toward the Noodle-Slurpers.

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  • hailun

    I will try my best to avoid Korea products. frankly.

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