32 securement of a future growth engine - samsung li-ion ...€¦ · at a research center under the...

32 Securementofafuturegrowthengine

30 SAMSUNG SDI SUSTAINABILITY REPORT 2017

Portion of research and development staff

%24.2

Research and development staff

2,215 persons

Revenue

2017

63,216

2016

52,008

2015

49,549

Un

it: 100

millio

n K

RW

Net income

2017

6,432

2016

2,111

2015

257

Un

it: 100

millio

n K

RW

Operating income (Loss)

2017

1,169

2016

- 9,263

- 2,6752015

Un

it: 100

millio

n K

RW

Investment in R&D against sales

The current state of registration of patents

R&D investment

billion KRW525.9

%8.3

13,304 cases

31

Portion of research and development staff

%24.2

Research and development staff

2,215 persons

Revenue

2017

63,216

2016

52,008

2015

49,549

Un

it: 100

millio

n K

RW

Net income

2017

6,432

2016

2,111

2015

257

Un

it: 100

millio

n K

RW

Operating income (Loss)

2017

1,169

2016

- 9,263

- 2,6752015

Un

it: 100

millio

n K

RW

31

What are important issues?

With the intensification of global competition, companies

resting on their laurels face difficulties in achieving greater

growth and development.

In this context, relevant efforts have been made to secure

differentiated research and development competency, as

well as to accelerate advancement into new markets based

on stable financial performances focused on advanced

companies.

Securement of a future growth engine

Stablemanagerialachievementthrough

enhancedcompetitivenessresulting

fromadvancedfuturetechnologies


Our status

Asaprovideroftop-rankmaterialsandtotalenergysolutions,SamsungSDIstrengthensitstechnological

competitivenessthroughconsistent investments inR&D.Simultaneously,wealsoendeavortomake

inroads intonewmarketsandtoconductsolidbusinessmanagementtoensurestablemanagerial

achievement.

Our evaluation

Inadditionto‘EnhancementofR&DCompetency’and‘NewMarketDevelopment,’whichwereselected

ashighmaterialissuesinthefinancialandeconomicsectorsin2016,‘SecurementofaFutureGrowth

Engine’and‘AchievementofStableManagerialPerformance’wereconsiderednewhighmaterialissues

asaresultofamaterialityassessmentin2017.

Our impact boundary

Regardingsecurementofafuturegrowthengine, ‘employees’and ‘partners’aredefinedasareasof

majorstakeholder interest.Employeesandpartnersfulfill theirrolesofenhancingproductivityand

creatingnewvalueonthefrontlineofmanagement.

Our performance & future plan

SamsungSDIplanstoincreasenewordersinexistingbusinessareasandtofocusonstrengtheningits

globalcompetitiveness.ItwillalsoexpandinvestmentsinR&Dinconsiderationofsales.

New market development

Securement of a future growth engine

Enhancement of R&D competency

Achievement of stable management

Stakeholders’interest

ImpactsonSamsungSDI

33SUSTAINABLE MANAGEMENTOVERVIEW

BUSINESS OVERVIEW

MATERIAL ISSUE IN2017

PREVIOUS ISSUE IN 2016

APPENDIX

Enhancement of R&D competency

SamsungSDIsecuresnewtechnologiesandfurtherstechnological

competitiveness throughconsistent investments inR&D. Ina

consistentefforttoemergeasanexpertcompanyintheenergy

sector, it seeks toberegardedasanenvironmentally-friendly

top-rankmaterialandtotalenergysolutionproviderengaged

in thenext-generationmarket featuringsecondarybatteries,

semiconductors,anddisplaymaterials.

R&D strategy

Ata researchcenterunder thedirectsupervisionof theCEO,

Samsung SDI operates Small-sized Li-ionbattery business,

AutomotiveandESS,andtheElectronicmaterialsbusiness.More

specifically, in2017,seekingtostrengthenthedevelopmentof

newtechnologiesthatcanleadtomomentumforfuturegrowth,

weexpanded and reorganized anR&Dcenter formaterials

development.

Open Innovation

In close collaborationwith specializedexternal institutions,

experts,anduniversities,SamsungSDIexpandsuniversity-industry

cooperationtosecurenext-generationbatterytechnologieswhile

nurturingexcellenthumanresourcesthroughfacilitatedexchanges

betweentheinvolveduniversitiesandcorporations.

In 2017, in cooperation with UNIST, we completed the

constructionofa‘BatteryR&DCenter’foreffectiveandintegrated

researchonsecondarybatteries.Theresearchcenterfocuseson

theinvestigationofSmall-sizedLi-ionbatteriesforsmartphones

and ITdevices, aswell asof automotive&ESSbatteries for

electricvehiclesandenergy storagedevices. In aneffort to

develop ‘fast-charged long-lastingsafebatteries,’weplan to

consistentlypushresearchonmaterialsusedinlithiumsecondary

batteries fornextgenerationof infrastructure, includingan

excellenthumanresourcepool,analysisdevices, facilities,and

productionlines.

Enhancement of cooperation in scientific research on secondary

batteries

SamsungSDItakesthe lead inexpandingtheresearchbaseof

secondarybatteriesandsecuringexcellentpersonnel through

strengthening networkswith universities. Following the

establishmentof industry-universitycooperation in2016with

SeoulNationalUniversity,POSTECH,HanyangUniversity,and

UNIST,wesignedanagreementwithSungkyunkwanUniversityin

Februrary2018toexpand,sustain,andstrengthencooperation

onresearch inthesecondarybatterysector.Cooperationwith

eachuniversity features joint researchprojects, a secondary

batteryR&Dcenter,andtheoperationofspecializationprograms.

Inorder toestablish systematic relationships through close

interactionswithacademia,wealsomatchpertinentexecutives

withresearchersonaone-on-onebasisandprovidesresearch

grants.SamsungSDIwillstrengthenthe impactof itsexcellent

humanresourcesandexpandedrecruitment in thesecondary

battery sector through proactive operation of industry-

universityprogramsandpushforsharedgrowth incooperation

withacademia throughconsistentexchangesof information,

personnel,andmaterials.

➊ A panoramic view of UNIST Li-ion Battery Industry- University Research Center

➋ Samsung SDI-Sungkyunkwan University Industry- University Cooperation Contract-Signing Ceremony ➊ ➋


Patent management

Inordertoenhancetechnologicalcompetitiveness inthesecondarybatteryfield,SamsungSDIdevelopscorematerialsofbatteriesat

theSDIResearchCenterandobtainspatentsbasedontheobtainedresearchresults.Wealsostrengthenpatentcompetitivenessthrough

effectivebusinesssupportfromvarioussectorsandfocusesondevelopingnext-generationtechnologies.Asof2017,weowned4,314

registeredpatentsinthedomesticmarketand8,990registeredpatentsinmajoroverseasmarkets,includingtheU.S.,Europe,China,and

Japan.wealsoendeavortobecompetitive inR&Dandpreventsdisputesonpatentsthroughconsistentapplication,registration,and

maintenanceofthem.

●Patentregistrationin2017(Unit:Case)

4,314 2,869 1,437 1,084 2,981 619

Research projects Research results and envisaged effects

Developmentofgap-fillingtapesfortheprotectionof

electrodeassemblyofcylinder-shapedsecondarybattery

•Improvementofanti-vibrationfeaturethroughfixationandprotectionofinner

components(jellyroll)ofthebatteries

DevelopmentofcylindricalcasesforxEVlithium-ion

batteries

•Developmentofcasebefittingbatteriesforelectricvehicles

•Improvementofsafetyandreliability

DevelopmentofOLEDdepositionmaterials•Advancementintonewmarketsthroughthedevelopmentofdepositionmaterials

thatcanleadtothedevelopmentofhighlyefficientandlong-lastingbatteries

Developmentofnext-generationpolarizingfilms•Expansionofaproductportfoliothroughthedevelopmentofpolarizingfilms

applicabletonewdisplayproducts

Developmentofhigh-brightnessCR•RetentionoftheexistingMSthroughthedevelopmentofproductswithahigher

brightnessthantheoneaffordedbyexistingproducts

Developmentofsemiconductorslurry •Expansionofmarketsthroughtheintroductionofnewproductgroups

DevelopmentofsemiconductorEMC •ExpansionofmarketsthroughthedevelopmentofEMCwithexcellentvoidproperties

Developmentofahighlyefficientelectrodepaste•Realizationofasecurebaseforincreasedsalesthroughthedevelopmentofahighly

efficientelectrodepaste

Main R&D Performance in 2017

Korea U.S. China Japan Europe Others


BUSINESS OVERVIEW



APPENDIX

1

32

SamsungSDIdevelopstechnologiesthatcandramatically improvethe

energydensityofbatteriestoensureanexpandedmileageofelectric

vehicles.

In2017,wedevelopedproductswithbattery capacities improved

by25%as compared toexistingproductsof the same size and is

currentlygettingreadyformassproduction.Wearealsopushingforthe

developmentoftechnologyofinnovativematerialsandstructuressoas

toconsistentlyimprovetheenergydensityofbatteries.

Thecapacityofthe21700battery(21mmindiameterand70mmin

height)hasimprovedby50%ascomparedtoexistingproducts(18650,

18mmindiameter,65mminheight).Thereforethedesiredcapacity

canonlybeachievedwitha smallnumberofbatteries.The21700

batteryhastheoptimumsizethatcanmaximizenotonlythe lifetime,

butalsotheoutput.Owingtoitscostcompetitiveness, inthefuture, it

isexpectedtoemergeasthestandardofthecylindricalbatterymarket,

featuringpowertoolsandelectricbikes.

SeekingtomaximizecompetitivenessofESS(EnergyStorageSystem),

SamsungSDIhasreducedthesizeofplatformsfrom19”to17”andhas

developedamoresimplifiedCompactPlatformwhosemodulesare

assembledwithouttrays.

This innovationhas reducedmaterial costs and improved energy

density,thusenablingthusanincreaseinmarketshareanddramatically

increasingsalesintheESSmarket.

Development

of high energy

density

automotive

batteries

Development of

cylindrical 21700

Battery

Development of ESS

Compact Platform


4

65

Since2016,whenthesafetyofsmartphoneswasquestioned,focusedefforts

havebeeninvestedintostrengtheningsafetyintheentireproductionprocess

ofR&D,manufacturingtechnology,andqualityinspection.Accordingly,in

ordertoobtaingoodfeedbackfromtheinspectionsbyexternalinstitutions,

whichledtoafull-fledgedsupplyofpremiumsmartphonesinthefirstofhalf

of2017,SamsungSDIdevelopedproductsofagreatlystrengthenedsafety.

Wealsoconductcontinuousresearchthatprioritizesproductsafetybased

onpertinentresearchofall-solid-statebatteriesthatcanfundamentally

prevent ignitionorexplosionthroughtheuseofsolidmaterials instead

oftheexistingliquidelectrolytes.

OLEDpanels requirepolarizedfilmswithanewstructurethatwould

differ from the existing LCDproductsdue to the strong surface-

reflectioncharacteristics.Inthisrespect,SamsungSDIstarteddeveloping

OLEDpolarizedfilmsbasedonthephasedifference inthinfilmsand

succeeded insecuringthis technology in2017beforesupplying it to

clientcompanies.

Thisachievement ledSamsungSDItosecureproducttechnologythat

canrespondtonewprocessesandowndiversifiedpolarizedfilmproduct

portfoliosneededontherapidlygrowingOLEDmarket.

In2014,inanefforttohelprealizeenvironmentallyfriendly/low-voltage

smartphones,wesuccessfullydevelopedG-Host (Phosphorescence

GreenHost),alow-voltage,long-lastingOLEDemittingmaterial.

In2017,wesucceeded indeveloping improvedproductswith longer

lifetimes and lower operating voltages to secure differentiated

competitiveness.Consequently, itwasselectedbymajorsmartphone

providersfortheirnewproducts.

Development of

technology to

enhance safety of

batteries

Development of

Polarized Films for

OLED

Development of

a low-voltage,

long-lasting OLED

emitting material


BUSINESS OVERVIEW



APPENDIX

BUSINESS STRATEGY

SamsungSDIprovidesoptimizedsolutionstodiverse ITdevice

markets featuringsmartphonesandwearabledevices. It also

expands thebusinessand leads thenewfast-growingSmall-

sizedLi-ionbatterymarket,therebyexpandingenvironmentally

friendly,highlyefficient trendsbasedon theeffectiveuseof

differentiatedtechnologies.

Demand prospects for Small-sized Li-ion Battery

PROSPECTS FOR GLOBAL MARKET

In2018,demand in theSmall-sizedLi-ionbatterymarket is

expectedtogrowby15%fromthepreviousyear,topostatotal

of8.1billioncells. Inparticular, inviewofanever-growinguse

of lithiumionsecondarybatteries invariouspowerapplications,

suchaselectricdevicesandvacuumcleaners,demandforthese

appliances isexpectedtogrowby26%ormorefromprevious

years.

In addition, themarket for electric vehicleswith cylindrical

batteries isdramaticallyexpanding. ITDivisionforecaststhatAI

andIoT(InternetofThings)technologieswillsoonbegenuinely

commercialized, leading to theproliferationofnewwearable

andVR/ARdevices.Inthiscontext,SamsungSDIplanstofurther

strengthenitsleadershipinvariousmarkets,rangingfromelectric

powertoIT.

BUSINESS CASE

Participation in EURO BIKE 2017

Samsung SDI participated in ‘EURO BIKE 2017’ held in

Friedrichshafen inGermany tounveil the lithium-ionbattery

technology for variouselectricbikes.Wedisplayed6 types

of standardizedbatterypacks forelectricbikes. In addition,

wealsoshowed12typesofbatterypacksandcellsofvarious

specifications. Italso introducedaddedBluetoothfunctionsto

thebatterypackthatenablesuserstocheckremainingbattery

powerandDistance toEmpty (DTE)withasmartphonewhile

ridingabike.

A 25% increase in capacity based on free-form batteries with

a smaller gap

As250mAhFreeVerseBatterydevelopedbySamsungSDIwas

installed inSamsungElectronicsGearS2, itwasunveiled inthe

market for thefirst time. Inorderto increasebatterycapacity

byapproximately25%andtobestfitthecylindricaldesign,the

newlydevelopedfreeversebatterywillbeimprovedintermsof

spatialuse.

BUSINESS PLAN FOR 2018

Followingthesuccessofasurplusin2017,SamsungSDIplansto

pushforconsistentgrowth insalesandhigherprofits through

stability.

Withregardtopolymerproductgroups,weplantocontinuously

expandour sales of suchhigh-safety, high-energy-density

products tomajor global clients. Concerning cylindrical

productgroups,weplantomaintainourcurrentlydominating

market shareand toexpand thedevelopmentand releaseof

differentiatedproducts.

Small-sized Li-Ion Battery

2017

Total demand (1 million)

7,067

8,124

8,842

9,916

11,205

2018

2019

2020

2021

15%

Growth rate

in 2018


BUSINESS STRATEGY

SeekingtominimizeCO2andvariousaircontaminantsemitted

from the existing internal-combustion engines, global auto

producerssuggestenvironmentallyfriendlyalternatives,including

electricvehicles. Inthisrespect,SamsungSDIfocusesonhigh-

efficiency, high-energy-density batteries for low-pollution

vehicleswith theaccumulatedexpertise in themobiledevice

batterysector..

Demand prospects for Electric Vehicles Battery

PROSPECTS FOR THE GLOBAL MARKET

In2017,SamsungSDI'ssalesofelectricvehicles(xEV)increasedin

majorglobalmarkets,includingChina,Europe,andtheAmericas,

torecorda25%growthratefromthepreviousyear.

Atthemoment,weplantostartreleasinganewmodelwitha

greatermileage in2018,andautomakersareexpectedtostart

launchingmodelsequippedwith long-distancedrivingsystems

andself-drivingsystems,givingfurthermomentumtothemarket

in2020.

By2022, thenumberof electric vehicles soldper annum is

expectedtorecordover10million,accountingthusfor10%of

theentireautomarket. Inaddition,duetostrictenvironmental

regulations in Europe, the number of diesel-fueled cars is

currentlydecreasing;moreover,countries likeNorwayandthe

Netherlandsareplanningtostopsellingandoperatingvehicles

withinternalcombustionengines.AstoChina,theworld’slargest

carmarket, it isexpectedto introduceacompulsoryquotaon

electric/plug-inhybridsystemsfrom2019.Accordingly,themid-

to-long-termelectriccarmarket is likelytodramaticallysurpass

marketexpectations.

BUSINESS CASE

Samsung SDI, ‘The Future of an Electric Vehicles Begin Today’

The ‘2018DetroitAutoShow’held inCoboCenter inDetroit,

Michigan,demonstratedhigh-capacity,rapid-charginginnovative

materials,aswellasadvancedproductsthatareexpectedtoplay

anessential role in inducingpopularizationofelectricvehicles

enmasse.At thisevent,wedisplayeddifferentiatedproduct

competitivenessthroughadiversifiedbatterycell line-upforthe

nextgenerationthatcanbeappliedtohigh-energy-densitybattery

cells forbatteryelectricorplug-inhybridvehiclesthatcanrun

upto600kmby integrating20-minutefastchargetechnology.

SamsungSDI isalsodeterminedto furtherdevelop innovative

technologiesbyintroducinggrapheneballs(improvedby45%in

termsofcapacityandfivetimesfasterintermsofspeed)andan

all-solid-statebattery(improvedintermsofmaterial,capacity,and

safety).Thisachievementhasbeenreported inapublication in

Nature,aworld-renownedsciencejournal.

Completion of construction of a factory manufacturing

batteries for electric vehicles in Hungary

Wecompletedtheconstructionofa factory thatcanproduce

batteriesfor50,000electricvehicles inanareacoveringabout

330,000m2inGoedcity,nearBudapestinHungary.Thefactory

inHungaryplanstostartmassproductionofthevehiclesfrom

the secondquarter of 2018. The factorywill contribute to

reducinglogisticalcostsandfurtherenhanceservicesofferedto

clientsinEurope.Duetostrictenvironmentalregulations,Europe

isagiganticpotentialmarket intheelectriccarsector,andthe

completionof theplant inHungaryhas ledSamsungSDI to

establish,incooperationwithUlsanandXianinChina,atriangular

productionsystemforglobalelectriccarbatteries.

BUSINESS PLAN IN 2018

InEuropeandotheremergingmarketswhereSamsungSDIisexpected

toachieveconsistentgrowth,weplantocontinuouslyincreasethe

releaseofnewproductswhoseproductionwillemploytheuseofnew

technologies,suchasanenergy-densityfast-chargingsystem.Currently,

inanefforttomeetthemarketdemandforenvironmentallysafecars,

globalautomakersarefocusedondevelopingelectricvehicles.Inthis

context,shiftingthefocusfromthesaleofcomponents.SamsungSDI

planstoplaytheroleofareliablepartnerthatcanoffertheoptimum

automotivebatterysolutiontoautomakerswhileleadingtheupstream

andthedownstreamindustriesintheelectricvehiclessector.

Automotive battery

2017

Total demand (GWh)

50

80

120

175

305

2018

2019

2020

2021

60%

Growth rate

in 2018


BUSINESS OVERVIEW



APPENDIX

BUSINESS STRATEGY

BypromotingtheESSbattery,themainproductofSamsungSDI,its

marketshareisnotonlyincreasinginthedomesticmarket,butalso

inadvancedeconomiessuchasJapan,theAmericas,andEurope.

Thestrategyalsofocusesonadvancingintoemergingmarkets,and

intensifyingourpresenceinvariousareasinbatterydomain,ranging

fromcommonhouseholdbatteriestolarge-sizedpowerbatteries,

commercialbatteries,andUPSbatteries.

Scale of global ESS lithium-ion battery market


Advanced countries, including theU.S., Japan, andEurope,

conduct large-scale empirical projectswith ESS-related

governmentgrantsandsecurepricecompetitiveness through

massproductionof lithium-ionsecondarybatteries. Inaddition,

bylegislatingthemandatoryintroductionofESSandbyproviding

subsidiesintheeventoflinkagebetweennewrenewableenergy

andESS, theseeconomiesprovidesystematic support to the

installationofESS.Accordingly,inadditiontotheU.S.,theworld’s

largestESSmarket,thedemandforESSisexpectedtoconstantly

growalso inJapanandEurope,centeringaroundGermany.The

KoreangovernmentnurturestheESS industrythroughthe ‘ESS

promotionfeesystem,’ the ‘RECweightvaluepolicy incaseof

linkagebetweennewandrenewablepowergeneratorsandESS,’

andthe‘RenewableEnergy3020ActionPlan.’Alltheseinitiatives

areexpectedtoexpandthedomesticESSmarket.

BUSINESS CASE

Additional supply of Samsung SDI batteries at 5,000 meters

above sea level in the high reaches of Tibet

In2016,aimingtosupplypowertoresidentsofthehighreaches

ofTibet,SamsungSDI, incooperationwithSungrow,thelargest

PCS(PowerConditioningSystem)provider inChina,conducted

anenvironmentallyfriendlyself-sufficiencysystemprojectwitha

14MWhESSanda13MWphotovoltaicgeneratorsystem.Shuanghuin

Tibet,theworld’shighest-altitudesiteamongglobalESSinstallation

sites,hasextremelycold(range:-5℃to-40℃)weatherconditions.

Amidthesedifficulties,SamsungSDIsuppliedhighlycompetitive

batteriesdevelopedbasedonoptimumsolutions.Ontopofthese

achievements,aimingtoprovethatourbatteriescanprovidethe

optimumsolutioninharshweatherconditions,wealsoinstalledPV

andESSonthesamescaleasSungrow.

Samsung SDI supplies batteries to the world’s largest industrial ESS

UsingSamsungSDIbatteries in itsHQinUlsan,HyundaiHeavy

IndustriesCo.,Ltd.establisheda51.5MWhindustrialESScenter.

Thisisrecognizedastheworld’slargestindustrialESSandcansave

powerusedby15,000personsaday,whichaccountsfor1/5ofthe

targetofanESSproliferationprojectthatthegovernmentpursues

aspartofanewenergyprogram.OperatingtheESSisexpectedto

decreaseenergyuseatpeaktimesrecordedbyHHIandtoincrease

energyefficiencytosaveabove10billionKRWinannualexpenses.


Amidglobalnuclear-and-coal-phase-outtrends,thereisanever-

growing interest innewrenewableenergy.Following2017,we

startedexpandinginvestmentsinelectricESSsolutionsanddeemed

itnecessarytoestablishastrategythatwouldenhancethesupply

tomeetthedemandsforESS inconsiderationofthefacilitated

photovoltaic industryin2018.Inaddition,consideringtheglobally

risingself-consumptionofphotovoltaicsystemsforhouseholds,we

plantoexpandasupplychannelofhouseholdESSsolutionsand

tosteadyincreaseourmarketshareinthissegment.Wealsoplan

toexpandESSsolutionbusinessesandtosolidifyourstatusasa

marketleaderintheESSsectorintheNorthAmericanandEuropean

markets,wherethebusiness isgraduallygrowingasaresultof

increasedelectricchargesandimprovedeconomicefficiency.Inthe

domesticmarket,thiswillbeachievedbylaunchingtheproducts

basedon innovativetechnology,whichwill leadtotheconstant

expansionofsalesandletusgaingreatsuccessintheindustry.

ESS

2016

Global (Unit: MWh)

2,824

4,512

10,029

12,738

17,289

2017

2018

2019

2020

57%

Growth


BUSINESS STRATEGY

TheElectronicMaterialsBusinessDivisionof Samsung SDI

developsandsellsmaterialsused insemiconductors,displays,

andnext-generationenergy.Astheseproductsarecharacterized

by a short life-cycle and speedy technological changes,we

strivetobeequippedwithadvancedR&Dcapability inorderto

meetdiversecustomerdemandsandvigorouslypush forward

theenhancementofbusinesscompetitivenessthroughuseof

differentiatedtechnologyandstrictqualitymanagement.

Sales performance of electronic materials


With a recent slowdownof the growth rate in theTV and

smartphonemarkets, demand for suchmain products as

semiconductorsanddisplayshasstagnated.However,theglobal

economyisexpectedtorecordthegreatestgrowthin2018after

the financialcrises,anddemandforourbusiness isexpected

togrowaswell. Inparticular,thesemiconductormarket,where

thememorysectoryieldsgoodresults, isexpectedtoboomon

thestrengthofthedevelopmentoffineprocesstechnologyand

theexpansionofa three-dimensional structure.Accordingly,

diverseapplicationsarelikelytocontinueadoptingOLED,thereby

creatinganewdemandinthedisplaymarket.However,dueto

generalizationoftechnology,theLCDmarketisexpectedtoface

intensifiedcompetition.Accordingly, theuseofdifferentiated

technology,costsavings,andfurthereffortstodiversifyresponses

tocustomerswillbecomekeyconcernsinthefuture.

BUSINESS CASE

Electronic materials business makes continuing efforts to

realize self-innovation

Startingwith thedevelopmentofEMC,aprocessmaterial for

semiconductors, in 1994,weentered theelectronicmaterials

sector.Sincethen,duetoconstantself-innovationandceaseless

technologicaldevelopment,wehavesuccessfullyadvancedintonew

sectors.Currently,with itsadvancedtechnologyandspecialized

competency invarioussectors, ranging fromsemiconductors,

displays,andsecondarybatteriestomaterialsforphotovoltaiccells,

weleadglobaltechnologytrends.

A path for a new growth engine found in OLED

Industrialleaderswithstrongmarketdominanceinthesmartphone

market have already appliedOLED in theirmain products.

SamsungSDItakestheleadinadvancingdevelopmentinaneffort

torespondtoshiftingcustomerneeds in therapidlychanging

marketwhereeven latecomers try togetaheadofothersby

expandinginvestmentsinrelatedsectors.PhosphorescenceGreen

Host(G-Host),anOLEDmaterialdevelopedbySamsungSDI in

2014,continuestorank1stinglobalmarketshare,andwewere

successful indevelopingimprovedproductswithlongerlifetimes

andloweroperatingvoltagessothattheseproductswereselected

bymajorsmartphoneprovidersfortheirnewproducts in2017.

In2016,onopeninga factory inWuxi,China,wesuccessfully

developedpolarizingfilmsforOLEDcharacterizedbyacompletely

differentstructureandenhancedproductivity.


SamsungSDIaimstomaintainitsglobalmarketleadershipbylaunching

differentiatedproductsonthestrengthofadvancedtechnologyin2018.

Furthermore,throughproactiveinvestmentsinproductsexpectedto

leadtechnologytrendsinthefuturewealsoplantoprovidethesolutions

mostdesiredbycustomers.Inordertosecuredominanceintheexisting

marketandtofocusondevelopingandsupplyingproductsthatcan

respondtothehighdemandforhigh-efficiencyproductsinfastgrowing

photovoltaicenergymaterialmarkets,wewilloffersemiconductorand

displaymaterialsthatexcelbeyondthoseofcompetitors.Atthesame

time,wewilldevelopflexibledisplayandsemiconductormaterialsfor

thefuture,therebyleadingthenext-generationITdevicemarketin

ordertosecureagrowthbasewhileestablishingaproductionsystemto

provideproductsdesiredbycustomers.

Electronic materials

Sales (Unit: 100 million KRW)

7,977

16,421

17,706

20,174

2014

2015

2016

2017

14%

Growth in 2017


BUSINESS OVERVIEW



APPENDIX

32 securement of a future growth engine - samsung li-ion ...€¦ · at a research center under the...

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