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Enter the Semiconductor Wars

Five different Japanese chip makers such as have decided to jointly set up a next-generation semiconductor plant as Intel and Micron have jumped onto the NAND flash-memory chip bandwagon by forming a venture called IM Flash Technologies.

The initial investment for each alliance well exceeds several trillion won (the South Korean currency). Such American and Japanese moves suggest that they will no longer tolerate corporations like Samsung and Hynix running ahead in the NAND flash market, whose gold mine after demand began surging for mobile phones and portable MP3 players has recently emerged.

Samsung Electronics and Hynix underwent difficulties during the Asian financial crisis in the late 1990s, when the prospects for recovery was bleak. However, they rose again with vigorous leadership, prompt decision-making and integrated business resources. Grasping the market flow in advance and adopting drastic investment plans have led to success.