Samsung - History - 1970 To 1990

1970 To 1990

In 1980, Samsung acquired the Gumi-based Hanguk Jeonja Tongsin and entered the telecommunications hardware industry. Its early products were switchboards. The facility were developed into the telephone and fax manufacturing systems and became the centre of Samsung's mobile phone manufacturing. They have produced over 800 million mobile phones to date. The company grouped them together under Samsung Electronics Co., Ltd. in the 1980s.

After the founder's death in 1987, Samsung Group was separated into four business groups – Samsung Group, Shinsegae Group, CJ Group and Hansol Group. Shinsegae (discount store, department store) was originally part of Samsung Group, separated in the 1990s from the Samsung Group along with CJ Group (Food/Chemicals/Entertainment/logistics) and the Hansol Group (Paper/Telecom). Today these separated groups are independent and they are not part of or connected to the Samsung Group. One Hansol Group representative said, "Only people ignorant of the laws governing the business world could believe something so absurd," adding, "When Hansol separated from the Samsung Group in 1991, it severed all payment guarantees and share-holding ties with Samsung affiliates." One Hansol Group source asserted, "Hansol, Shinsegae, and CJ have been under independent management since their respective separations from the Samsung Group." One Shinsegae Department Store executive director said, "Shinsegae has no payment guarantees associated with the Samsung Group."

In the 1980s, Samsung Electronics began to invest heavily in research and development, investments that were pivotal in pushing the company to the forefront of the global electronics industry. In 1982, it built a television assembly plant in Portugal; in 1984, a plant in New York; in 1985, a plant in Tokyo; in 1987, a facility in England; and another facility in Austin in 1996. As of 2012, Samsung has invested more than US$13 billion in the Austin facility, which operates under the name Samsung Austin Semiconductor LLC. This makes the Austin location the largest foreign investment in Texas and one of the largest single foreign investments in the United States.

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