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Taking the first
step
toward the
K-chip Era
with
consulting
services

Expanding the
semiconductor
ecosystem by
helping our
partners grow

The K-chip Era begins
Rows of data storage in a data center lit up with red light. Close-up of a child holding a sprout in dirt. An adult's hands are cupping the child's hands. Two hands fiddling with a device.
with mutual growth

The K-chip
Rows of data storage in a data center lit up with red light. Close-up of a child holding a sprout in dirt. An adult's hands are cupping the child's hands.
Era begins with
Two hands fiddling with a device.
mutual growth

Samsung Semiconductor employees in protective gear are looking at products.

The main driver of the
K-chip Era
is partner
collaboration

One of the first steps toward sustainable growth is building a robust domestic semiconductor supply chain. That’s why we have been fostering mutual growth with partners and recently signed MOUs with major suppliers for the joint development of parts and facilities. In 2020, we provided consulting on production and quality control to small- and medium-sized facility and parts suppliers. Prior to that, we started providing business management consulting in 2015 and operating an executive-level advisory group in 2018.

Improving partner

profits with
business

management
consulting

Illustrations of two different-sized gears, a factory and of people.

partners
received

management
consulting

(2015-2021)31

We assembled a group of 100 or so field experts with over 20 years of experience to share our expert knowledge with partners. We also operate an annual cost innovation program that helps diagnose and optimize processes to remove waste and improve business operations. For partners struggling with profits and quality control, experts conduct in-depth assessments of the situation and help partners make changes to improve their businesses. To do so, experts visit partner sites once or twice a week for a year to analyze the partner’s Cost of Poor Quality (COPQ) and recommend areas of improvement. As a result, our partners have seen cost reductions and improvements in overall business operations.

A management
advisory
group of
Samsung

executives

Illustrations of a graph with a gear, a factory and a pen and paper.

partners
received
consulting

(2018-2021)124

Samsung executives have also formed a management advisory group to offer partners consulting in nine areas: development, production, quality control, environmental safety, human resources, business management, sales and marketing, information protection and procurement.

Executives visit partner sites and offer a wide range of expertise based on years of field experience. This executive consulting service is particularly popular among partners. From 2018 through 2021, a total of 124 partners took advantage of the service.

Sharing Samsung’s
expertise in chip
production and
quality control

Production and quality control
consulting in 2020

Illustration of two different-sized gears, paper and a light bulb

Around50%Goal achievement
progress

Around270No. of goals set
for
partners

Samsung carries out a variety of efforts and services to improve the quality of domestic parts and, as a result, boost supplier competitiveness. One example is our consulting services, where we send experts to partner sites to observe and assess the production and quality control process over a certain period, then provide solutions and goals developed specifically for that partner.

Six suppliers for our major partners received consulting services in 2020, and we set 270 goals, with an average achievement rate of 50% per goal.

Opening the K-chip
Era
with our
partners

Samsung Semiconductor employees in protective gear are looking at products.

The strategy for the K-chip Era can be divided into three parts: strengthening ties with local communities by providing support to facilities and parts partners, investing in the future of semiconductors via university grants and research deals and growing with local communities through environmental management.

In taking the first step toward the K-chip Era by sharing and growing together with partners, Samsung will continue investing in its consulting services for them. And by doing so, we look forward to building a more robust and healthier semiconductor ecosystem with our partners.

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