SAMSUNG ELECTRONICS: "We do not settle to be Number 2."

Samsung, as a world's TOP information technology company, consumer electronics maker and chipmaker, first entered the electronics industry in 1969 with several electronics-focused divisions. Their first products were black-and-white televisions. However, transforming from a trading and industrial company into a high-tech enterprise presented challenges in technology research and development. To address this, Samsung chosen to collaborate with Japanese companies. Initially, Samsung mainly acted as an OEM for Sanyo and NEC, producing electronic products under their brands. Gradually, this expanded to refrigerators, air conditioners, and fans.

From OEM to the World Top Company in Semiconductors

Samsung Electronics' success started with OEM. Due to strict confidentiality regarding production technology from the Japanese companies, Samsung spent several years as an OEM without acquiring any core technologies. Consequently, Samsung's R&D team began purchasing advanced market products and started tackling technical challenges by dismantling machines, determined to independently develop domestic electronic products. In 1976, after years of effort, Samsung developed a 14" color television. Two years later, the production of black-and-white televisions by Samsung exceeded that of Japan's Matsushita, making it the world's top seller. At that time Samsung was already a major manufacturer in Korea, and it had acquired a 50 percent stake in Korea Semiconductor.

The late 1970s and early’ 80s witnessed the rapid expansion of Samsung’s technology businesses. Separate semiconductor and electronics branches were established, and in 1978 an aerospace division was created. Samsung Data Systems (Samsung SDS now) was established in 1985 to serve businesses’ growing need for systems development. That helped Samsung quickly become a leader in information technology services. Samsung also created two research and development institutes that broadened the company’s technology line into electronics, semiconductors, high-polymer chemicals, genetic engineering tools, telecommunications, aerospace, and nanotechnology.

Samsung had made an indelible contribution to the development of DRAM memory. In the autumn of 1983, Samsung's semiconductor factory officially began the its first production line. Due to technical challenges at the time, Samsung focused on DRAM memory chips to lower the difficulty of entry. Compared to CPU chips, DRAM technology was less complex and easier to engage with. By the end of that year, leveraging a license from Micron Technology in the United States, Samsung successfully developed a 64KB DRAM chip. Remarkably, Samsung completed the work of production line, research and development, and mass production within just one year. Subsequently, as the competitive relationship between the U.S. and Japan, which held the core semiconductor technologies, worsened alongside Japan's economic bubble, Samsung seized the opportunity to develop and gradually gain leverage. For instance, Samsung partnered with Toshiba, which was struggling with the economic bubble, and leveraged the flash memory technology to easily secure the top position in the DRAM and flash memory markets, a position it has maintained ever since.

 (Fig. Samsung's first-made 64KB DRAM chip)

With the development, Samsung standed out from the crowd of competitors. In 2002, Samsung Electronics' market revenue first surpassed that of Japan's Sony. In 2006, its revenue reached the $100 billion. In 2009, Samsung's market value briefly exceeded Intel's, making it the largest semiconductor manufacturer in the world. From 2001 to the end of 2010, Samsung's semiconductor revenue grew by an impressive 355%, ranking it second globally, with only a 4.1% gap in market share compared to the leading company, Intel. In the mobile market, by 2011, Samsung's share of the global smartphone market reached 20%. By 2013, this number increased to 37.7%, double that of Apple's 18.7%, making it the market leader. In the second quarter of 2017, Samsung Electronics' sales reached $15.8 billion, surpassing Intel's $14.76 billion, establishing itself as the new leader in the global semiconductor chip market. In 2019, Samsung Electronics is the world's second-largest technology company by revenue, and its market capitalization stood at US$520.65 billion, the 12th largest in the world.

Samsung's Semiconductor Market Revenues From 2002 to 2023

Samsung's semiconductor sales have evolved significantly from 2002 to 2023, reflecting broader industry trends, technological advancements, and shifts in demand. Here’s a brief overview of the annual situation during that period:

2002-2010: Early Growth and Expansion

• 2002-2005: Samsung solidified its position as a key player in the DRAM market, with strong sales driven by rising demand for memory chips in personal computers and consumer electronics.

• 2006-2010: The company began diversifying into NAND flash memory, capitalizing on the surge in smartphones and mobile devices. Sales grew steadily as demand for both DRAM and NAND increased.

2011-2015: Technological Advancements and Market Leadership

• 2011: Samsung became the world's largest memory chip manufacturer, driven by innovation in 3D NAND technology.

• 2012-2015: The boom in mobile devices and cloud computing fueled high demand for semiconductors. Samsung's revenue from semiconductors reached new highs, with significant investments in R&D and manufacturing capacity.

2016-2018: Record Profits and Market Fluctuations

• 2016: Samsung reported record semiconductor sales, largely due to booming memory prices.

• 2017-2018: The company benefited from high prices in DRAM and NAND markets, leading to substantial profit margins. However, concerns about potential market saturation began to emerge.

2019-2020: Market Corrections and Challenges

• 2019: Sales began to decline as memory prices fell due to oversupply. Samsung faced increased competition from other memory manufacturers.

• 2020: Despite challenges posed by the COVID-19 pandemic, Samsung adapted by shifting focus to high-value products and growing demand for data centers.

2021-2023: Recovery and Future Investments

• 2021: Semiconductor sales rebounded sharply, driven by increased demand for chips across various sectors, including automotive, IoT, and AI applications.

• 2022-2023: Samsung announced ambitious plans to invest heavily in semiconductor manufacturing, including advanced processes and expanding production capacity to meet future demand, solidifying its leadership position.