Samsung 2004 Annual Report Download - page 50

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>>>>>> Dynamic RAM >>>>>>>> Flash Memory >>>>>> Multi-Chip Packages >>>
SEMICONDUCTOR BUSINESS
The global semiconductor memory market grew 43% in 2004 to over $48 billion as the industry benefited from
strong pricing in the DRAM market due to industry-wide process migration problems and production allocation
between DDR1, DDR2, and legacy products. The NAND flash memory market also experienced robust growth
as demand for digital cameras and MP3 players skyrocketed. Despite fierce competition, pricing pressure from
the rising Korean won, and other formidable challenges, our ongoing investment to enhance both technology
and production capacity once again enabled us to extend our market leadership in all major memory sectors as
we captured 31% of the DRAM, 28% of the SRAM, and 27% of the flash markets according to Gartner
Dataquest. Overall, memory accounted for 77% of our revenues, system LSI products for 12%, and other stor-
age media for 10% as we grew sales 43% to a record $17.5 billion. Our operating margin rose from 28% to
41% as operating income jumped a remarkable 107% to $7.2 billion, making 2004 our most prolific and prof-
itable year since we began silicon wafer fabrication 30 years ago.
>>>>>
We continued to push memory den-
Introduced an advanced lineup of device
solutions for the mobile market at the 1st
annual Samsung Mobile Solution Forum
in Taipei, Taiwan.
MARCH
Announced a 512Mb XDR DRAM, a next-
generation technology offering up to 8x the
bandwidth of DDR400 DRAM. Opened a system
LSI research center in Hangzhou, China.
FEBRUARY
Broke ground for the second phase of
a US$500 million nanotech expansion project in
Austin, Texas. Developed a system-on-chip
HDTV solution with dual MPEG-2 decoders.
JULY
03 SALES 04 03 OPERATING PROFIT 04
$3.5billion
$7.2 billion
FINANCIAL HIGHLIGHTS
$17. 5 billion
$12.2 billion
2Gb DDR2 SDRAM
We announced the industry’s first 2-gigabit DDR2 memory
chip featuring a proprietary three-dimensional “recessed channel
array transistor” design to deliver a density generally expected
to require a future 65-nanometer process with today’s
80-nanometer technology.
CAPEX INVESTMENT 2004 $3.5 billion
$4.1 billion
2003