A top executive of Samsung said in an interview that the company has kept the the leader position in the semiconductors and DRAM (memory) businesses since 1992. He claimed that other companies can't catch up because Samsung has consistently keeps a six months to one year technology lead. To keep ahead, the cost of production has to be pushed down through economies of scale, to maintain the 10 to 20 percent cost advantage ahead of our competitors, the executive said.

For example, Samsung adopted the fifth-generation LCD panel size, while LG Philips invested in some other format. And we had invested a little bit earlier than they did. Same thing in their DRAM business, instead of outsourcing its manufacturing work, the Korean giant clings to existing factories and invests large amounts in new ones. Rather than rely on technology partners to provide components, it wants to own the supply chain. Samsung keeps investing and keeps making money.

By: DocMemory
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