4. HYNIX
• Cost advantage of Korea
• Over-investment ▶ Fail
• Recently JV with Chinese producer
Infineon
• German, long history
• SA to reduce investment risk
• Taiwan-based DRAM manufacturer
• JV with Nanya
• Heavy investment planned in Asia
MICRON
• US
• Acquisition of Texas instrument
• 26years, financial distress
• Focus on DRAM
• Get invested from Intel
5. SMIC
Estabilished in 2000 and HQ in Shanghai
Get licensed from others (Infineon)
Purchase of production facility 1 b
High revenue growth (revenue & stock exchange)
Produce older generation (outdated tech)
Grow market share at expense of profitability
By Son of former Chinese leader Jiang Zemin
4% to 7% world market share increase predicted
Fast increase
15. Currently, the competitors of Samsung are far behind
Samsung.
However, there is a potentially huge threat from China
16. Strength – Resource and Low production cost
Weakness – Outdated technology, lack of
ability to design memory chips
Current strategy – Aggressive pricing
Likely strategic move – purchase technology
license or Strategic Alliance with competitors
Hinweis der Redaktion
The competitor
2 –talk about competitors based on slides 1
Future strategy- purchase technology Current strategy – Aggressive strategy Capability – resource, government subsidyAssumption – established in 2000 and hq in ShanghaiCompetitor -
1
The secret of success is the ability to produce with low cost and sell with high price. In the semiconductor industry, the key success factors are low production cost and reliability. Reliability is an important factor that increases the price because the OEM PC producers pay premium for quality and reliability of the products. – they get serious damaged in sales when their PC is defectedBenchmarking In order to know how to defend
1
Investment from Foreign and Chinese investors Low labour cost Government support and subsidy in semiconductor industry Lack of Intellectual Property enforcement
What I want to point out is SMIC. SMIC's production cost is the second best and the price is the lowest. SMIC is low cost production and low price which means the aggressiveness and potential. Besides, it’s fully advantages from China2nd Lowest production costThe lowest priceResourceGuan xiGovernment subsidy
1
Currently, the competitors of Samsung are far behind SamsungHowever, there is a potentially huge threat from Chinae.g) Competitors may step into alliance with Chinese manufacturersEspecially, SMIC, major Chinese competitor, has a lot of resource and low production costis posing aggressive strategy to attack market share. Its market share is predicted to increase from 4% to 7% in 2005
Strength – resource, Government Support, low production cost Weakness – Outdated technology, Current strategy – AggressiveLikely strategic move – purchase technology license
