SAMSUNG, HYNIX TO UNITE FOR NEXT-GENERATION CHIPS

SEOUL, Jun 25, 2008 (AsiaPulse via COMTEX) -- SSNJY | Quote | Chart | News | PowerRating -- Samsung Electronics Co. (KSE:005930) and Hynix Semiconductor Inc. (KSE:00660), the world's top two computer memory chip makers, said Wednesday that they will form a united front to develop and standardize next-generation semiconductors.

The companies said they will engage in joint research and development (R&D) of spin-torque-transfer magnetic-random-access-memory (STT-MRAM) chips, and become the industry standard-setters for the next generation 450mm wafer fab market.

The cooperative alliance, announced at a gathering of semiconductor companies and government policymakers in Seoul, is being pursued to help secure vital basic technologies locally and do away with the need to pay royalties to foreign companies, the companies said.

They added that if the joint R&D venture on STT-MRAM, to be launched in September, is successful, the companies will be able to fend off Japanese competitors trying to regain dominance in the semiconductor sector and generate an estimated $500 million worth of royalty earnings.

The global market for the new chip is expected to mature around 2012.

Samsung and Hynix said cooperative work to establish worldwide industrial standards in the 450mm wafer sector, which is expected to replace the 300mm wafer, will begin in August.

The concerted effort between businesses, research laboratories and the government will be centered on such areas as wafer parts, manufacturing equipment and materials.

South Korean companies will, in addition, expand cooperative ties with U.S. industrial leaders JEDEC, SEMATECH and SEMI to establish technology standards.

"International standard setting is critical, particularly for manufacturing equipment and materials industries that have to make products designed to follow established rules," said an industry source.

He said if Samsung and Hynix can lead standard setting in the field of 450mm wafer fabs, it could help boost production of South Korean semiconductor equipment and materials manufacturers from $7.8 billion in 2007 to $15 billion, or 15 per cent of the predicted global market share, in 2012.

The two companies also agreed to introduce set testing systems that can evaluate and certify locally made computer chip manufacturing equipment, which may improve equipment sales.

The move, planned for July, may also help small and medium-sized enterprises (SMEs) that have struggled to get large companies to purchase their chipmaking equipment. In the past, because there were few concerted efforts to test locally made equipment, major chipmakers relied on imports. This fueled the country's chronic trade deficit with Japan, hindering growth of local SMEs that possess the technology to make necessary products for both local and export markets.

Samsung and Hynix said that by incorporating a new testing requirement that can certify the quality of local parts and equipment, they will be able to buy more locally made products and help reduce costs.

(Yonhap)

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