The Case for Green Tech Innovation. Jim Elliott. Vice President Memory Marketing Samsung Semiconductor, Inc. Samsung Power.

Transcription

1 The Case for Green Tech Innovation Jim Elliott Vice President Memory Marketing Samsung Semiconductor, Inc.

2 The Case for Green Tech Innovation Green Samsung Recycling Direct

3 Why Is Green Important?

4 Why Is Green Important? Financial / Government $77.6B from Stimulus Package is for Clean Energy / Tech Venture capitalists invested > $4 billion in Clean-Energy and Green startups last year

5 Why Is Green Important? Financial / Government $77.6B from Stimulus Package is for Clean Energy / Tech Venture capitalists invested > $4 billion in Clean-Energy and Green startups last year Regulators, NGOs and Media Increasingly Taking Environment into Consideration Pressuring Manufacturers to Change and Innovate

6 Why Is Green Important? Financial / Government $77.6B from Stimulus Package is for Clean Energy / Tech Venture capitalists invested > $4 billion in Clean-Energy and Green startups last year Regulators, NGOs and Media Increasingly Taking Environment into Consideration Pressuring Manufacturers to Change and Innovate Retailers and Consumers I give a 5 out of 5 for the importance of Industry Going Green Brad Anderson, CEO Best Buy Scorecards shared to influence Greener purchasing

7 Samsung s Green Vision Tier 1 Green Electronics Company Employees Investors Communities Customers We care about the environment and want to work for a company that is helping to protect the planet We want to operate strategically in a way that improves financial performance Samsung is protecting our environment and responding to the needs our communities We purchase and dispose of our products in an environmentally responsible way Scorecard Govt, NGOs Products Media Green Scorecard to be transparent and specific with our Green progress and performance Compliance with all local, state, federal and international regulations. We Samsung help define environmental Power Green solutions Luncheon best practices. We will relentlessly innovate to create products that can be utilized towards green We will communicate our Green commitment & core messages to all external and internal stakeholders

8 Nov 08 Greenpeace Guide to Greener Electronics Report Samsung scored 5.9 out of 10 and is tied for second Nokia and Samsung can take a bow though there's plenty of work they still need to do to save the planet. Top scorers on energy efficiency of individual products are Apple, Nokia, Sony Ericsson and Samsung.

9 Products Must Perform; Green Cannot Supersede Features and Functions / Performance Respondents reiterate that product features and functions are of greatest importance Environmental consciousness and price come after product benefits. Cost Increases Respondents say they are willing to budge somewhat on product cost if it means environmental consciousness (most specifically reduced energy consumption) but only to an extent. In Seattle, consumers were willing to pay up to 30% more, while other markets were willing to pay 10-20% more. Total Cost of Ownership Break-even point must be attained quickly if not immediately CFL Light Bulb Sales Declined in Q4 after the Economic Crisis Green Goal: Superior Performance and Lower Cost

10 Low-Power Solutions Accelerating DRAM 1.35V DDR3 40% Reduction in Power NAND / SSD Notebook: Up to 40 minutes more before charging Enterprise: Orders of Magnitude Improvement TFT / LCD Up to 50% Power Savings for Mobile Screens New Edge-lit LED Backlighting for TV s HDD 40~45% less power with new drive technology (F2EG) Current Economic Climate Will Drive Need for Innovation and Differentiation

11 Hybrid Car Analogy: Camry vs Prius Camry Hybrid: Incremental Approach Prius: Holistic Approach Car Facts Metric Design Optimization Camry: Hybrid Option #1 Selling Car in US Some: Conventional Gas + Electric Add-on Prius: Hybrid Only #1 Registered Car in Santa Clara County Complete / Holistic: Thin Tires, Aerodynamic, Lighter Weight Fuel Economy Improved: MPG Best in Class: 48 MPG MSRP $19.1K $26.1K (+$7K) $22K Base Pricing Decision Impact Mileage Needed to Break Even:??? Incremental Improvement Total System Value / TCO Disruptive; New Product Category; Game Changing

12 Enterprise: Ripe for Disruption? Did You Know America consumes more power running data centers than TVs * Source : 2008 McKinsey Study, Fortune, Sept 15, 2008

13 Samsung Memory: Disruptive Value SSD 40X Faster vs 15K HDD <1/4 th the Power >100X More Efficient Less Real Estate Lower Cooling Costs Replace Multiple HDDs DDR3 Lower TCO vs DDR2 Higher Efficiency/Watt 2X Faster Lower Voltages (1.35v) >40% Power Savings Lower Cooling Costs TCO Green IT

14 SSD Disruptive to Enterprise: IOPS/$, IOPS/W Green Short Stroking 15K HDD 3.5 SSD 2.5 Capacity 146GB 100GB IOPS / W X 6065 *SSD: IOPS - random 512B, Data (Samsung) *HDD: Price and Data from storagereview.com; IOPS: average read speed

15 So What are Samsung and Our Partners Doing to Implement Disruptive, Green Technology???

16 Samsung SSD and DRAM in World s First Virtualization Server "SSDs used as the primary storage medium in server blades provide a much better value proposition with their added reliability, low-power and high performance" Virtualization servers improve server utilization for the Greenest data center possible

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18 NAND Flash Based Holistic Approach. Disruptive

19 Green is a Journey Not a Destination Continuous Improvement: As Aggregate System Efficiencies Improve, Remaining Inefficiencies will Samsung be Exposed Power in this Green New Value Luncheon Chain

20 2008: Visibility is Poor Green Call to Action

21 2008: Visibility is Poor 2009: Green Call to Action GREEN Technology Will Accelerate Innovation Innovation Will Enable Efficiencies Efficiency Will Create New Markets New Markets Will Save the Economy Samsung Will Help Make it Happen!

22 Thank You! Questions? uesti