Samsung 2003 Annual Report Download - page 15

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15
Samsung Electronics maintained a sizeable cash
balance even after making huge investments in
facilities and R&D. The fixed costs in semiconductor
and LCD production are extremely high, forming
a natural entry barrier to competition. The company’s
2003 capital investment of $5.63 billion was
comparable to that of Intel. In 2004, however, our
investment will double. We plan to invest $6.62
billion in 2004 for capital improvements, including
another state-of-the-art chip production line and
an upgrade in technology to build larger LCD panels
for television sets and computer monitors.
We have a golden opportunity right now. While
our Japanese and American competitors are slow in
recovering their competitiveness, and emerging
competitors have yet to mature, we have posted
strong growth continuously in the past five years.
This has given us the resources to invest for the future
and to accelerate innovation in products, technology,
marketing, cost, global operations and organizational
culture. We are taking the upper hand in realizing
digital convergence and leading the broadband era.
We intend to seize this opportunity to leap forward
and become a premier company in the world– the
best of the best – as we help shape the future of how
people work, play and live.
Chief Executive Officer,
Jong-Yong Yun
Won/ US Dollar as of December 31, 2003: 1,197/1
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