Samsung said that it plans to convert Transchip into a research and development center and rename it as Samsung Semiconductor Israel R&D Center. The acquisition will leave Samsung with 17 R&D centers around the world including South Korea, India, China, Russia, the US, and Japan.
Samsung manufactures complimentary metal oxide semiconductors (CMOS) image sensors, which are used in imaging solutions for mobile telephones and digital cameras. The CMOS image sensor market is set to grow at a rapid pace with camera phone leading the escalation. Samsung reports that the acquisition will augment its capabilities in the image sensor business. In addition, it will strengthen its position against its mobile phone competitors since high end handsets available in the market have a sharper camera focus.
Transchip will be the first purchase for Samsung since it last acquired 3DO Co’s hardware systems business for $20 million in April 1997.
This acquisition follows the announcement made by Samsung’s rival Hynix Semiconductor in October 2007, according to which it plans to re-enter non-memory chip production after three years. This acquisition is expected to expand Samsung’s market share outside the memory chip market.
Source: ComputerWire daily updates
