Secrets of Samsung’s innovation success

In a rare visit to Australia, Samsung’s expertise in R&D and technology innovation was featured in the speech presented at the University of Sydney event.

Dr Hwang leads one of the fastest growing profit and innovation centres of the global technology giant. Today, Samsung is the world's second largest semiconductor company behind Intel Corp, with over a third of the company’s $US56.7 billion global revenues (2005) generated by the semiconductor business.

The Korean powerhouse, showing no signs of slowing down, currently holds #1 global market share in 3 major memory products DRAM, SRAM and NAND Flash, and Samsung’s Semiconductor Business is pleased to be enjoying an era of unprecedented growth in this important technology area.

Within the mobile phone, digital music player and slimline notebook, lies a common element fundamental to the improved capability and function of these everyday products – core semiconductors.

Samsung holds an unrivalled competitive position in many of these product areas. Having the full range of semiconductor components bringing unique and unmatched offerings in areas such as mobile telephony and digital consumer applications, Samsung is rapidly building its market competitiveness in the digital entertainment and mobile era.

“People talk about risk management these days, but I think risk taking is more important,” Dr Hwang said at the APRU meeting, of the importance of driving innovation and creativity in Samsung’s businesses.

“Even if one goal is accomplished, we never stop. The continued setting of new goals keeps competitors primarily focused on catching up with the existing market – Samsung’s core values lay in our ability to push the boundaries in new thinking and innovation.”

This ‘risk-taking’ approach is evident in the company’s nomadic mindset which sees it moving consistently towards the newest and most innovative semiconductor technologies, resulting in the continued market leadership in DRAM, NAND Flash and more recently MCP/Mobile/Fusion.

The business focus is shifted as technologies and standards evolve. Samsung has redefined accepted memory growth standards. Where Moore’s Law represents semiconductor density and advancement doubling every 18 months, Samsung has now doubled memory density every year for 6 consecutive years since the development of 256MB in 1999, developing the industry approved New Memory Growth Model – an entirely new industry standard.

Samsung plans to be the first to create the 20TB (terabyte) memory card by 2015 – enough memory to store all the books in the US Congress.

In his speech, Dr Hwang predicted that by 2010, all digital devices would be in an integrated format with no boundaries in a form soon to be known as Fusion Technology.

The convergence of IT, biotechnology and nanotechnology, ‘fusion technology’ is set to create a paradigm shift from PC centric devices to those of the mobile and digital consumer era.

Looking further forward, Dr Hwang also stated the ultimate goal of the semiconductor technology as matching the memory density of the human brain – a huge 100 Terabyte capacity that he predicts will be reached by 2030.

Samsung’s innovative spirit is driven by 17 R&D centres and 6 design centres worldwide. Of the world’s smartest technology professionals, 32,000 of them work in these centres and 10 percent hold doctorates from some of the world’s most academically-prestigious universities.

Approximately 15 percent of the R&D team is focused purely on the research of human needs and lifestyles 10 years from now. This is research that places Samsung beyond the realms of the industry’s main players.

Ten percent of Samsung Group revenues ($US56.7 billion in 2005) are invested in these activities each year – a huge investment that continues to reap valuable returns.

The coming together of bio, nano and information technology is set to drive the further development in seamless mobile and digital consumer electronics. Convergence at chip level will mean simultaneous function of multiple applications, memory formats and data storage. For the first time, ‘fusion technology’ will make all of these capabilities available on the same chip, so will be ideal for small, yet powerful, mobile devices.

To ensure the continuation of this breakthrough research and development, Samsung Electronics has a number of global initiatives to attract, cultivate and retain the smartest people, ensuring that Samsung is not only a brand that people trust and admire, but is a company that they aspire to join.

“Samsung’s efforts to develop its human resources and attract the world’s smartest innovators, inventors and designers are fundamental to our success in creating the next technology era,” said Dr Hwang.

“Today, one smart person affects the survival of 10,000 people. The need for core human resources has never been more urgent and cannot be achieved without the help of the world’s universities,” said Dr. Hwang.

“An important part of recruitment includes close communication and interaction with the academia which includes frequent visits and presentations at renowned universities.”

Samsung attracts and retains some of the brightest and smartest in the global technology industry, offering opportunities for international growth, development and education of its staff in 120 offices across 57 countries through international work placements, scholarships and postgraduate study opportunities.

The APRU presidents’ meeting is an initiative organised to promote discussion and collaboration between academic institutions in Pacific Rim economies. Samsung Electronics’ involvement in the APRU President’s Meeting is a symbol of the organisation’s goals to partner with leading players in the global knowledge economy.

Dr Hwang has been with Samsung Electronics since 1989; his responsibilities include research, development, and manufacturing of all semiconductors, OMS (Optical Media Solution) and HDD (Hard Disk Drive) products.