"Only 1 Korean company out of 546 foreign companies”… True value of semiconductor leading country without base
Park Jung Il | comja77@ | 2018-01-23 10:11:12
■Innovative growth 2018
Semiconductor & Display ‘material spare part’ should be focused (Top part)
Semicon West, the world`s largest semiconductor industry exhibition, in July last year, was held in San Francisco, USA. Only one of the 546 participating companies participated in this exhibition. "Semiconductors are a strong export market, but they show a very low level of competitiveness in parts and materials," said a member of the Korea Semiconductor Industry Association who participated in the event every year.
Emergency lights have turned on the Korean semiconductor and display industries, which boast the world`s best competitiveness. In the case of 9-inch or larger-sized flat panel display panels, LG Display topped China for the first time in 31 quarters, and memory semiconductors were threatened by checks by the US, growth of China, and revival of Japan.
In the case of semiconductors, the US International Trade Commission (ITC) is investigating whether solid-state drives (SSDs) of nine companies including Samsung Electronics and SK Hynix infringe intellectual property rights, according to local semiconductor maker Beat-micro. In terms of display, China BOE has outperformed LG Display by recording a 21.7% share of the 9-inch and larger display panels (LCD, OLED, etc.) market in the third quarter.
On the other hand, experts point to the fact that the absence of competitiveness in core technologies, such as core parts and materials and related production equipment, is more important than the pursuit of Chinese semiconductor and display products. It is pointed out that the current status of semiconductors and display powerhouses is only a `top-of-the-line` without roots, because the dependence of core materials and equipment on semiconductor and display manufacturing is too high.
Among Korean semiconductor, display materials, parts and equipment companies, Samsung Electronics` annual sales of more than KRW 1 trillion are Samsung affiliates such as SEMES and Samsung Electronics (currently Hanwha Tech). This is due to most of the sales of domestic semiconductor materials, components and equipment depend on SEC and SK Hynix.
Meanwhile, these companies are not easy to export products to other semiconductor and display manufacturers due to the rivalry between Samsung Electronics and SK Hynix, and it is not easy to engage in active R & D. It is due to the pressure of big companies that big companies that manufacture finished products have secured major patents on technology and that if they supply parts or equipment to other foreign manufacturers, technology or business secrets may leak out.
For example, R & D accounts for only 2.44% of Semiconductors` total sales in the third quarter of last year. Domestic sales amounted to 1.42 trillion won and exports amounted to KRW 111.7 billion, which is less than one tenth of domestic sales.
Because of this situation, none of the top 10 semiconductor companies in the world are among the domestic companies. As of 2011, the world`s top 10 semiconductors belong to America`s America, followed by ASML in the Netherlands and Tokyo Electron in Japan, four in the US, four in Japan and two in Europe. Until recently, Top 10 has not changed.
Especially, core parts are almost dependent on imports. According to the industry, the localization rate of semiconductor materials and equipment reaches 50%, but major core materials, parts and equipment such as exposure equipment are dominated by foreign companies.
Likewise, the localization of related parts and equipment reaches 70%, but the key pre-processing equipments and key components such as high-value-added exposure equipment and evaporator have dominated markets such as Japan Torq and Ulvac. The domestic semiconductors and display industries seem to have been unable to wait for the growth of the materials and parts industry as the display industry is growing rapidly and securing the world`s top level competitiveness.
On the other hand, the semiconductor equipment industry in Japan, which occupied a market share close to 50% in the 1990s, has slowed down due to the sluggishness of semiconductor manufacturers, and its market share has fallen to 30%. However, from a few years ago, it has increased its share of the market by raising its R & D ratio to 10%. China is also fostering both finished products and roots industry by providing subsidies and tariff benefits to its semiconductor, display materials, parts and equipment. It is also aggressive in acquisitions and acquisitions (M & A) to secure technology.
Opportunities for nurturing downstream industries such as materials, components, and equipment have yet to take off in the opening of the 400mm wafer era, entry into micro-fabrication processes below 10nm, and display paradigm shifts in organic light emitting diodes (OLED) in the semiconductor industry. An industry expert said, "There is an urgent need to foster a semi-governmental semiconductor display back industry that will preemptively respond to future markets."
By Park Jung Il & Kim Eun comja77@
[ copyright ⓒ The Digitaltimes ]
Semiconductor & Display ‘material spare part’ should be focused (Top part)
Semicon West, the world`s largest semiconductor industry exhibition, in July last year, was held in San Francisco, USA. Only one of the 546 participating companies participated in this exhibition. "Semiconductors are a strong export market, but they show a very low level of competitiveness in parts and materials," said a member of the Korea Semiconductor Industry Association who participated in the event every year.
Emergency lights have turned on the Korean semiconductor and display industries, which boast the world`s best competitiveness. In the case of 9-inch or larger-sized flat panel display panels, LG Display topped China for the first time in 31 quarters, and memory semiconductors were threatened by checks by the US, growth of China, and revival of Japan.
In the case of semiconductors, the US International Trade Commission (ITC) is investigating whether solid-state drives (SSDs) of nine companies including Samsung Electronics and SK Hynix infringe intellectual property rights, according to local semiconductor maker Beat-micro. In terms of display, China BOE has outperformed LG Display by recording a 21.7% share of the 9-inch and larger display panels (LCD, OLED, etc.) market in the third quarter.
On the other hand, experts point to the fact that the absence of competitiveness in core technologies, such as core parts and materials and related production equipment, is more important than the pursuit of Chinese semiconductor and display products. It is pointed out that the current status of semiconductors and display powerhouses is only a `top-of-the-line` without roots, because the dependence of core materials and equipment on semiconductor and display manufacturing is too high.
Among Korean semiconductor, display materials, parts and equipment companies, Samsung Electronics` annual sales of more than KRW 1 trillion are Samsung affiliates such as SEMES and Samsung Electronics (currently Hanwha Tech). This is due to most of the sales of domestic semiconductor materials, components and equipment depend on SEC and SK Hynix.
Meanwhile, these companies are not easy to export products to other semiconductor and display manufacturers due to the rivalry between Samsung Electronics and SK Hynix, and it is not easy to engage in active R & D. It is due to the pressure of big companies that big companies that manufacture finished products have secured major patents on technology and that if they supply parts or equipment to other foreign manufacturers, technology or business secrets may leak out.
For example, R & D accounts for only 2.44% of Semiconductors` total sales in the third quarter of last year. Domestic sales amounted to 1.42 trillion won and exports amounted to KRW 111.7 billion, which is less than one tenth of domestic sales.
Because of this situation, none of the top 10 semiconductor companies in the world are among the domestic companies. As of 2011, the world`s top 10 semiconductors belong to America`s America, followed by ASML in the Netherlands and Tokyo Electron in Japan, four in the US, four in Japan and two in Europe. Until recently, Top 10 has not changed.
Especially, core parts are almost dependent on imports. According to the industry, the localization rate of semiconductor materials and equipment reaches 50%, but major core materials, parts and equipment such as exposure equipment are dominated by foreign companies.
Likewise, the localization of related parts and equipment reaches 70%, but the key pre-processing equipments and key components such as high-value-added exposure equipment and evaporator have dominated markets such as Japan Torq and Ulvac. The domestic semiconductors and display industries seem to have been unable to wait for the growth of the materials and parts industry as the display industry is growing rapidly and securing the world`s top level competitiveness.
On the other hand, the semiconductor equipment industry in Japan, which occupied a market share close to 50% in the 1990s, has slowed down due to the sluggishness of semiconductor manufacturers, and its market share has fallen to 30%. However, from a few years ago, it has increased its share of the market by raising its R & D ratio to 10%. China is also fostering both finished products and roots industry by providing subsidies and tariff benefits to its semiconductor, display materials, parts and equipment. It is also aggressive in acquisitions and acquisitions (M & A) to secure technology.
Opportunities for nurturing downstream industries such as materials, components, and equipment have yet to take off in the opening of the 400mm wafer era, entry into micro-fabrication processes below 10nm, and display paradigm shifts in organic light emitting diodes (OLED) in the semiconductor industry. An industry expert said, "There is an urgent need to foster a semi-governmental semiconductor display back industry that will preemptively respond to future markets."
By Park Jung Il & Kim Eun comja77@