Apple Invests $US100 million in Samsung

Apple Computer is investing $US100 million in Samsung Electronics to help the South Korean company's semiconductor subsidiary expand its production capacity for TFT-LCD panels, which have been in short supply since last year. Apple says it wants to ensure supply of TFT displays for its portable products.

Apple Computer is investing $US100 million in Samsung Electronics to help the South Korean company's semiconductor subsidiary expand its production capacity for TFT-LCD panels, which have been in short supply since last year.

Apple is making the investment in order to ensure that there will be an adequate supply of the TFT-LCD (thin-film transistor liquid-crystal displays) for its portable products, the company said in a statement.

"With our new iBook and fast selling PowerBooks, Apple will need more flat displays than ever going forward," Steve Jobs, Apple's interim chief executive officer said in the statement.

Samsung Semiconductor "would be running out of capacity without this investment," said Richard Haas, a spokesman with Samsung Semiconductor's office in San Jose, California. Samsung Semiconductor is a wholly owned subsidiary of Samsung Electronics.

The South Korean company shipped 2.25 million of the TFT-LCD panels last year and about the same amount in the first half of this year, said Haas. "So we really ramped up compared to last year and expect to continue that ramp," he added.

Under the multi-year agreement, which has been approved by the board of directors of both companies, Apple will acquire convertible bonds of Samsung Electronics exchangeable for common stock, according to Haas.

At the beginning of this year, IBM invested $100 million in Samsung to help the company accelerate its delivery of Direct RDRAMs (Rambus dynamic random access memory) chips, the next-generation PC memory chips based on Rambus's high-speed interface technology.

Apple, based in Cupertino, California, can be reached at +1-408-996-1010 or on the Web at http://www.apple.com/. Samsung Semiconductor can be reached in Seoul, South Korea, at http://www.samsungsemi.com/. Samsung Electronics is at http://www.samsungelectronics.com/.

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