●Hyundai Electronics Industries Co., Ltd. has announced that, beginning this year, it is initiating a much stronger focus on the non-memory semiconductor (System IC) sector of its business.
A number of strategic actions have already been implemented to place this critical market segment on a fast-track growth path. Following the merger with LG Semicon in October of 1999, Hyundai separated its semiconductor organization into the Memory Strategic Business Unit and System IC Strategic Business Unit in order to focus specific resources directly to Hyundai’s System IC business. Particular attention is being given to the System IC’s foundry business and five major products (microprocessors, LCD drivers, CMOS image sensors (CIS), RF chips, and digital media) in the application specific standard product (ASSP) field. As a result of the synergistic effects of the merger, establishment of short- and long-term strategic plans, and six months of focused investment, the System IC Business Unit is now assuming a key role in Hyundai’s business plan. “Our objective is to develop the foundry business, moving Hyundai into position as the world’s 3rd leading supplier of foundry services within next three years,” said Huh Yeum, chief manager of Hyundai Electronics Industries’ System IC Business Unit. “With the focus on our five major ASSP products, we will also develop a high value-added semiconductor business in the digital home appliances and telecommunication arena.” Hyundai expects its sales of products in the non-memory sector to reach $700 million this year, a three-fold increase over last year. The company’s non-memory product sales are forecast to reach $1.3 billion in 2001 and to account for 20 percent of Hyundai’s total semiconductor sales in 2003. Moreover, sales of Flash, SRAM, and System IC products are expected to increase to 45 percent of Hyundai Electronic Industries’ total business in 2003. This will balance the company’s current DRAM-biased business structure, thereby minimizing the impact of fluctuations in the DRAM marketplace.
