Samsung Electronics Strategic Analysis

3185 Words13 Pages
Memo To: Kun Hee Lee, Chairman and CEO of Samsung Electronics From: Josh Graham, Senior Consultant, Whirlwind Consulting Co. Date: 28-Apr-08 Re: Emerging Chinese DRAM industry Executive Summary Whirlwind Consulting Company has reviewed the current position of Samsung in the semiconductor and memory chip industry, and has completed an extensive internal and external analysis to determine Samsung’s options in response to the threat of significant future expansion within the Chinese semiconductor industry. It is our opinion that Samsung should begin an incremental decline in the production of low-end DRAM memory chips, and initiate an extensive strategic movement towards capturing the higher-end of the DRAM market, as well as new niche…show more content…
Elpida Memory is the only DRAM producer left in Japan. Their strategic focus is on memory chips for smaller devices, such as cell phones, gaming systems, and other consumer electronics. In 2004, they added another production facility in an attempt to increase output, and increase market share. Elpida manufactures advanced memory technologies, like double data rate (DDR) DRAMs and Rambus-based DRAMs, in addition to standard memory modules. They have investment ties to Nintendo, Hitachi, and Intel. Hynix Semiconductor is the second largest memory chip manufacturer in Korea behind Samsung. Hynix has suffered over the last 6 years as a result of poor economic decisions, and legal troubles in the United States. Hynix still manufactures DRAM and other standard memory chips, but sold most of their other businesses to avoid bankruptcy as a result of their former debt. Despite financial troubles, Hynix has recently decided to collaborate with a Chinese company to build a new production plant in China. Hynix accounts for almost two thirds of the memory chip sales in Asia. Infineon Technologies is a German-based company, and has manufactured semiconductors since the start of the technological revolution. Infineon has more than 25 locations for research and development spread all over the world. They have significant financial and business development ties to various smaller memory chip companies. Three quarters of Infineon’s sales are in Asia and North America. Its
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