Qualcomm Inc (QCOM)

[khemara_qc]

LG Electronics to invest US$25.3 billion

LG Electronics recently held a strategy meeting on business and technology development at the LG Production and Technology Institute in Pyeongtaek, Korea.

Around 60 top officials took part, including LG Chairman Bon Moo Koo; LG Electronics CEO S. S. Kim; LG.Philips LCD Vice-Chairman Bon Joon Koo; LG Electronics President Paik Woo-hyun; as well as CEOs from various LG Electronics divisions, and heads of LG research institutes.

“LG will invest a total of US$1.95 billion in research and design in the electronics area in 2004, a 21 per cent increase compared with 2003,” said Mr K.H. Kim, President of LG Electronics, Middle East and Africa. “LG will gradually increase investments every year to reach US$3.38 billion in 2007 and more than US$5.1 billion in 2010, making a grand total of US$25.3 billion spent on R&D by 2010.”
Through substantially increasing investment, LG aims to boost staffing levels, increasing the number of employees in its electronics division from 14,000 to 24,000 by 2007, and to 30,000 by 2010.

There are plans to reinforce LG’s position in the GSM mobile handset market by building on its competitiveness in the CDMA sector. LG aims to break into the world’s top three for mobile handsets by 2007.

When it comes to digital TV units, continuing to develop world-class technologies in core chips and software has been identified as a priority for expanding LG Electronics’ share of advanced markets like North America.
Mr Kim added: “In the highly competitive display arena, LG is determined to build on its leadership in PDPs and LCDs through timely investments and different products. LGE also plans to reinforce its world number one position in display devices by securing next-generation display technologies.”

LGE aims to expand its capabilities in home air conditioners, and develop new business opportunities in premium digital appliances through substantial R&D investment in mobile handsets, digital TVs, and flat-panel displays.

A staggering US$254 million has been allocated for 2004 alone for R&D in home networking, car infotainment, mobile AV devices, and next-generation storage devices and parts.

Mr Kim said: “We shared the view that only core technological leadership can ensure sustained growth. LG has decided to continue to invest in R&D in electronics, focusing on businesses growth and expanding our manpower.”

“The meeting allowed top managers to pursue new business and R&D strategies, and explore opportunities in high-end product areas.”

http://www.cpilive.net/news_ver2/inside.asp?wherefrom=search&newsitem=531200431210AMRESELLER+WOR...