Asian semiconductor and electronics technology...
Transcript of Asian semiconductor and electronics technology...
Asian Semiconductor and Electronics Technology Conference
November 7-8, 1988 Hotel Shilla Seoul, Korea
UNITED KINGDOM Dataquest UK Limited 13th Floor, Centrepoint 103 New Oxford Street London WCIA IDD
England 01-379-6257
Telex: 266195 Fax: 01-240-3653
GERMANY Dataquest GmbH
Rosenkavalierplatz 17 D-8000 Munich 81
West Germany (089)91 10 64 Telex: 5218070
Fax: (089)91 21 89
1290 Ridder PaA Drive San Jose, California 95131-2398
(408) 437-8000 Telex: 171973
Fax: (408) 437-0292
Sales/Service Offices:
FRANCE Dataquest SARL Tour Gallieni 2
36, avenue Gallieni 93175 Bagnolet Cedex
France (1)48 97 31 00 Telex: 233 263
Fax: (1)48 97 34 00
JAPAN Dataquest Japan, Ltd.
Taiyo Ginza Building/2nd Floor 7-14-16 Ginza, Chuo-ku
Tokyo 104 Japan (03)546-3191 Telex: 32768
Fax: (03)546-3198
EASTERN U.S. Dataquest Boston
1740 Massachusetts Ave. Boxborough, MA 01719
(508) 264-4373 Telex: 171973
Fax: (508) 635-0183
KOREA Dataquest Korea
63-1 Chungjung-ro, 3Ka Seodaemun-ku Seoul, Korea
(02)392-7273-5 Telex: 27926
Fax: (02)745-3199
The content of this report represents our interpretation and analysis of information generally available to the public or released by responsible individuals in the subject companies, but is not guaranteed as to accuracy or completeness. It does not contain material provided to us in confidence by our clients.
This information is not furnished in connection with a sale or offer to sell securities, or in connection with the solicitation of an offer to buy securities. This firm and its parent and/or their officers, stockholders, or members of their families may, from time to time, have a long or short position in the securities mentioned and may sell or buy such securities.
Printed in the United States of America. All rights reserved. No part of this publication may be reproduced, stored in retrieval systems, or transmitted, in any form or by any means—mechanical, electronic, photocopying, duplicating, microfilming, videotape, or otherwise—without the prior written permission of the publisher.
© 1988 Dataquest Incorporated
DataQuest n n a company of MtMB The Dun & Bradstreet Corporatx
ASL\N SEMICONDUCTOR AND ELECTRONICS TECHNOLOGY CONFERENCE Approaching the Asian Age
November 6-8, 1988 Hotel Shilla Seoul, Korea
SUNDAY, November 6
4
6 00 p.m. Registration -;••::•*>... .Dynasty Hall 00 p.m. to 00 p.m. Cockta i l Recept ion i . . . . . v . . . . . ; Dynasty Hall
MONDAY, November 7
7:00 a.m. Registration Continues i . i.v :.-..;.. * * *, ^ .* Dynasty Hall 8:30 a.m. Welcome Dynasty Hall
Tom Wang Director, Asian Components Group Dataquest Incorpwrated
8:45 a.m. Approaching the Asian Age Dynasty Hall Tom Wang Director, Asian Components Group Dataquest Incorporated
9:00 a.m. World Semiconductor Outlook Dynasty Hall Gene Norrett Corporated Vice President and General Manager Components Division Dataquest Incorporated
9:30 a.m. Asian Semiconductor Industry Update Dynasty Hall Tom Wang Director, Asian Components Group Dataquest Incorporated
Korea Semiconductor Industry Update Dynasty Hall J.H. Son Senior Industry Analyst, Asian Components Group Dataquest Incorporated
Break Dynasty Hall Technology Innovation in South Korea Dynasty Hall
Jin Ku Kang President Samsung Semiconductor and Telecom
Changing PC Manufacturing and Marketing Strategies Dynasty Hall Dr. Irving Ho President Institute for Information Industry (III)
Emerging Intellectual Property Issues Dynasty Hall Dr. Judith Larsen Senior Industry Analyst, Research Operations Dataquest Incorporated
Lunch >.,. > Dynasty Hall Emerging Telecom Market Opportunities . .>, .i, .:.>>..,....„..,,,,, , , , . , . . . , . , . , , . Dynast}' Hall
Dr. In Ku Kang Senior Managing Director Goldstar Co., Ltd.
(Continued)
1290 Ridder Park Drive, San Jose, CA 95131-2398 (408) 437-8000 Telex 171973 Fax (408) 437-0292
9:50
10:15 10:30
11:00
11:30
12:30 2:00
a.m.
a.m. a.m.
a.m.
a.m.
p.m. p.m.
2:30 p.m. Taiwan's New Manufacturing Frontier Dynasty Hall Dr. Ding-Yuan Yang President Winbond Electronics Co.
3:00 p.m. Entering the ASIC Market , Dynasty Hall Dr. Hong Jo Chang Executive Managing Director Daewoo Telecom Co. Ltd.
3:30 p.m. Break Dynasty Hall 4:00 p.m. Developing Sm^l Electronics Business in South Korea Dynasty Hall
Dr. K.O. Park Senior Vice President Hyundai Electronics Industries Co.
4:30 p.m. A New Player in the Asian Semiconductor Game—India Dynasty Hall Rahul Sud Vice President, Marketing Microchip Technology Inc.
5:00 p.m. The Rise of China's Semiconductor Industry Dynasty Hall Xu Juyan Chief Engineer Wuxi Microelectronics Complex
6:00 p.m. Cocktails Dynasty Hall 7:00 p.m. Dinner Dynasty Hall 8:00 p.m. Dinner Speech Dynasty Hall
Speaker to Be Announced 9:00 p.m. Entertainment Dynasty Hall 9:30 p.m. Adjourn Dynast}' Hall
TUESDAY, November 8
8:30 a.m. Approaching the Asian Age Dynasty Hall J.H. Son Senior Industry Analyst, Asian Components Group Dataquest Incorporated
8:45 a.m. America After the Election—A New Direction? Dynasty Hall John Wilson Vice President, Business and Technology Analysis Dataquest Incorporated
9:15 a.m. U.S. Market Strategies in Asia: An Outsider's View Dynasty Hall Jerry Lynch Director of Strategic Program and Southeast Asia Sales Advanced Micro Devices
9:45 a.m. Market Opportunities for U.S. Companies: An Insider's View Dynasty Hall Goh Guek Ling Vice President, Asia Pacific Division Texas Instruments Singapore Pte. Ltd.
10:15 a.m. Break Dynasty Hall 10:30 a.m. Japanese Electronics Manufacturing in Asia: An Outsider's View . . .• Dynasty Hall
Arthur T. Suyama General Manager, International Marketing Division Matsushita Electronics Co.
11:00 a.m. The Emerging European—Asian Connection Dynasty Hall Y.C. Lo President Philips Taiwan Ltd.
11:30 a.m. Beyond the Clone: Personal Computer Market Opportunities in Europe Dynast}- Hall Sheridan Tatsuno Senior Industry Analyst, Asian Components Group Dataquest Incorporated
12:30 p.m. Lunch .• Dynast}' Hall 2:00 p.m. Workshop: Pacific Rim Megatrends in the 1990s > ; ; . ,:• .Dynasty Hall 4:00 p.m. • Conference Adjourns -. Dynasty Hall
DataQuest 'nVB a company of l i l l The Dun &Bradstreet Corporation
ASIAN SEK:II:ONDUCTOR AND ELECTRONICS TECHNOLOGY CONFERENCE November 97 through 88, 1988
Seoul, Korea
Advanced Micro Devices, Inc.
Advanced Micro Devices, Korea
Anam Industrial Co.
Apollo Computer Pte Ltd.
Ashland Chenical Company
AT4T
B.K.Electronics
BTU Engineering Corporation
Coipaq Computer Corporation
Daewoo Research Institute
Daewoo Telecom Co..Ltd.
Daily Economics
Data Communications Corp.
Dataquest Incorporated
m
Hike Ballard, Director, Sales SE Asia Glen Balzer, Vice President, Asian Pacific Oper. Gene Conner, Senior Vice President Jerry A. Lynch, Director, Asian Sales
Harry Kang, Branch Manager
Stephen H. Kim, Vice President
Jeffrey E. Shaw, Managing Director, Manufacturing
James A. Duquin, Vice President and General Manager Gerald M. Snyder, Business Manager
Deirdre Bradway, International Marketing Consulting Kathy Scher, Manager, Internation Marketing Sin Fook Seng, Product Marketing Manager Eugene Tang, Representative
Kyung Mi Shin, Reporter
Joseph C. Maliakal, Director, Marketing and Sales
Chris Gintz, Director, Tech. Planning i Development Leslie Gintz
Jung Sik Park, Manager, Industry Research
Soo Ik Chae, General Manager Hong Jo Chang, Executive Managing Director Yong Bae Kim, Executive Vice President Chong Man Lee, Manager, Sales Byoung Kil Yoo. Deputy General Hgr, Sales
Ho Gi Min, Reporter
In Sup Paek, Director, Network Application Jae Chon Park, Senior Manager, Network Application
Jung Weon Hwang, Secretary Richard W. Kamman, Consultant Cecilia C. Kamman Judith Larsen, Senior Industry Analyst D.D.Moon, Marketing Manager
1290 Bidder Park Drive, San Jose, CA 95131-2398 (408) 437-8000 Telex 171973 Fax (408) 437-0292
Donjah Trading Corp.
Don^duck University
Donnanj Nylon
DuPont Electronics
Eaton Corporation
Electronic Enjineerinj Times
Electronic Times
ERSO/ITRI
European Commission (EC)
Gemini Research
Gestetner Lasers Pty Limited
Goldstar Company, Ltd.
Goldstar Semiconductor Ltd.
Gene Norrett, Corporate VP and Division General Mjr J.H.Son, Senior Industry Analyst Eun Kyuns: Talc, Receptionist Sheridan Tatsuno, Senior Industry Analyst Ton Wan;, Director, Asian Components Group John W. Wilson, Vice President, Research Operations Je Hoon Lah, Exec. Manasinj; Director
Younj In Kim, Professor
K. S. Qh, Manager, Planning:
Tim A. Smith, Marketini: Manai:er Irma Smith
Robert W. Osborn, Asia Pacific Manager
David Lammers, Chief of Tokyo Bureau
Ki Hyun Keum, Reporter
Beeshow Ju, Planning Engineer
Christopher Wilkinson, Head of Division
Jasper Pan
Neil Hardie, Manaj^er, Research and Development
Y. C. Bae, Manager, Marketing Hyeonj Ki Choi, Executive Director, Planning Div. Yoo Shik Kang, Exec. Director Dae Ree Kim, General Mgr, International Business C. H. Lim, General Manager, Marketing Engineering Dong Yong Park, Manager, Purchasing Gab Seob Shin, Manager, New Business Planning Joo Hwan Yang, Manager, Business Planning S.H, Chang, 2nd Division Dong Won Choi, Assistant Mgr, Strategic Planning Hin Sung Choi, Exec. Director In Ku Kang, Senior Managing Director C. S. Yun, General Manager, Planning and QC
Hampshire Instruments, Inc. Tom Kulczycki, Director, Sales and Marketing
Hitachi Elect. Components Ltd. S. Morii, General Manager •
Dataquest Incorporated, a company of The Pun & Bradstreet Corporation 1290 Ridder Park Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
Hitachi, Ltd.
Hoechst Korea
Hong Kong Productivity Council
Hyundai Electronics Industries Co., Ltd.
IBM Korea Inc.
ICA Technologies Ltd.
Inst, for Infflrmation Industry
Intel Corporation
Intel Seaiconductor Ltd.
Intel Technology Asia, Ltd.
Jung Poong Products Co., Ltd.
Korea Economics
Korea Electronics Co.
Korea Photomask Co,
Korea Microsystems, Inc.
Norio Sobajima, Manager Masayuki Takegawa, Department Manager
Hyun Joo Park, Marketing Manager
Peter Chan
Hong Rum Choi, Assistant Manager, Semiconductor R^D Soo Choi, Manager, Semicon. Business Hyun Sun Chung, Manager, Semiconductor R and D Mun Bae Chung, Vice President, Sales and Marketing Chang Seock Han, Senior Hgr, Marketing and Sales S. C. Kim, Director, Semicon. Business Taik Ho Kim, Senior VP, Sales and Marketing Young II Kwon, Director, Sales and Marketing Kye Hwan Oh, Senior VP, Semiconductor Business K. 0. Park, Senior Vice-President Chong Ik Shim, Manager, Sales and Marketing Sun Ho Song, Assistant Manager Chang Shik Suh, Senior Manager, Assembly Sales Kyung Hee Kim, Analyst, Planning S Research Yong Shin Lee, Engineer, IPO Sung Ha Woo, Manager, Technology and QA Makoto Nishimura, Deputy Gen. Hgr, Busi. Cntl Dept.
Irving T. Ho, President Mrs. Ho Colley Hwang, Manager Tai Yang Hwang, Vice President
Jeff Bloch, Manager, Commodity Management Mark Noonan, Memory and IC Commodity Manager
James N. Chapman, Regional Marketing Manager
Young K. Sohn, General Manager
C, S. Moon, Senior Managing Director
K. S. Chung, Reporter
Jae Doo Yun, Director, Sales
Soo Hong Jeong, Senior Manager Won Suk Suh. President
J. H. Lee, Vice President
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
Korea Tokyo Silicon Co., Ltd.
Kyocera Corporation
L'Air Liquide
LSI Lojic Korea
LTX Korea
Lam Research Corporation
Lucky Advanced Materials, Inc.
Macro LSI
Matsushita Electronics Co.
Microchip Technology Inc.
Ministry of Trade and Industry
Molex Korea Co., Ltd.
Monsanto Japan Ltd.
Motorola HK Ltd.
Motorola, Inc.
Motorola Korea Mktj.
NCR Corporation
National Semiconductor HK Ltd.
Nikke Business Publications
Oki Electric Industry Co., Ltd.
Pacific Semiconductor Inc.
Hyuk Don? Kwon, Hanajinj Director
Hironobu Sakamoto, Manager, Korea Marketing Group
J. F. Piffard, Electronics Corporate Marketing Mgr
J. P. Shin, President
Robert Finkenaur, Vice President, Customer Support J. S. Lee, General Manager Y. J. Yoo, Marketing Manager
H. S. Chang, Sales Representative Steve P. Deornellas, Vice President, Marketing Joe Ocanpo, Marketing Product Manager
Choong Ki Kim, Planning Seung Ku Lee, Executive Director, Ceramic Division
Mike Bae, President
Arthur T. Suyaoa, General Mgr, Infl Marketing Div.
Rahul Sud, Vice President, Marketing
Nam Hoon Huh, Vice Minister Gwang Shik Kim, Director Yong Won Kwon, Manager, Semiconductor Won Shik Kim, Manager, Information Systems
H Nathan Yi, Marketing Manager
Charles Cook, VP, Electronic Materials Division
W. K. Poon, Business Manager
Harjit Bhalla, Director, Market Research i Planning
W. S. Chun, President
Thomas Lau, Manager
Gene Taatjes, Director
Rikiya Okabe, Senior Editor, Nikke Electronics
Ikuo Anada, Corporate Director
Raymond Dingle, President and Chief Exec. Officer
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
Perkin Elaer Korea Corp
Philips Hon; Kon;
Philips Taiwan
Prudential Asia
Prudential Bache Securities
Saopo Corporation
Saasunir Corning
Saasuns Electronics Co.. Ltd
Schlumberger Systens, Korea
Seoul Economics
Seunjjun Sangsa Ltd.
Silicon Integrated Systems
In Sang Lio, Branch Manager
Peter W. Bacon, Director, Far East Wct'g and Sales
Y. C. Lo, President
Hark Brefka, Vice President
Jin Ho Chung, Chief Officer, Seoul C. K. Lee, Vice President, Seoul Yoshiaki Nasu, Vice President, Tokyo Bin Sohn, Senior Analyst, Seoul Yaaada Toshio, Director, Tokyo Peter Wolff, Vice President, Tokyo
H. C. Hike Yang, Associate Administrator
I. K. Kim, Senior Manager, New Business Team S. C. Kim, Researcher, RSD
Byung Yoon Ahn, Semiconductor Planning Min Ho Bae, Assit. Mgr, Semiconductor Management Seung Hwan Bae, Manager, Computer Planning Nag II Chang, Manager, Semiconductor Planning Mi Jeong Hwang, Semiconductor Planning Sung Chul Jin, ftssil. Hgr, Semiconductor Applicat'n Ho Moon Kang, Director, Semiconductor Marketing K. H. Kia, Manager, Marketing Ki Tae Kim, Assit. Mgr, Semiconductor Plant Kyu Hong Kim, Manager, Semiconductor Marketing Myoung Soo Kim, Assit. Mgr, Semi. Application Y. S. Kim, Exec. Vice President Dong Chul Lee, Semiconductor Development Keun Woo Lee, Semiconductor Planning Keung Chul Lim, Semiconductor Planning Chan Kyu Myung Hae Kwon Park, Senior Manager, Semi. Marketing Hee Sun Park, Semiconductor Planning Hyoung Sik Park, Semiconductor Marketing Tae Hwan Roh, Assit. Mgr, Semiconductor Application Kyung Hyun Sung, Semiconductor Planning Suk Ryul Yoo, Semiconductor Planning Young II Lee, General Manager Doo Young Huh, Reporter Sang Hak Park, Exec, Managing Director
J. J. Quo, President
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
Singapore Econonic Developoent Board
Software Design Ltd.
Ssangyoung Computer Systems •
Systems Science Consulting Inc.
Taiwan Semiconductor Mfg. Corp.
Tatung Telecom Corporation
Tegal Corporation
Teradyne Korea
TI Singapore (Pte) Ltd,
TI Supply Co.
Toshiba Seoul Branch
U.S. Department of Commerce
United Microelectronics Corp.
VLSI Design Ltd.
Vitelic Taiwan Corporation
Western Digital Korea Ltd.
Winbond Electronics Corp.
Wuxi Microlectronics Complex
Soo Tian Chua, Director, Industry Development Div. Suresh Natarajan, Senior Industry Officer
Hiroshi Tatejima, VP, Strategic Planning Koichiro Yamada, Senior Vice President
Byung Duk Ahn, Planning
Kil Won Lee, President
C. C. Tsai, Marketing Manager Heint Veninga, Vice President, Finance Klaus C. Wiemer, President Stella Wiemer
Yuan Sun Tang, Deputy Director
Mark Stark, General Manager, Asia
J. K. Lee, Manager, Sales
Goh Guek Ling, Vice President, Asia Pacific Div.
Boon Chiang Lim, Marketing Director
Do Sun Hong, Assistant Manager, Sales
Michael C. Andrews, Res. Analyst, Foreign Avail'ty
Mollis J. H. Lo, Manager Steve Wang, Manager
Don Kube, Manager Jeff Winters, Managing Director, Far East
Henry Shaw, Deputy General Manager
P. June Min, President
Ding Yuan Yang, President
Xu Juyan, Chief Engineer
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San JosSi CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
DataQuest a company of The Dun & Bradstreet Corporation
n n a company of
APPROACHING THE ASIAN AGE
Tom Wang Director
Asian Components Group Dataquest Incorporated
Mr. Wang is Director of Dataquest's Asian Components Group and Associate Director of the Asian Semiconductor and Electronics Technology Service (ASETS). He is responsible for strategic research of the semiconductor and electronics industries of Korea, Taiwan, Hong Kong, Singapore, China, India, and other parts of Asia. Prior to joining Dataquest, Mr. Wang was employed at National Semiconductor as Applications Manager and Market Research Manager. Earlier, he worked as a Project Leader designing mainframes, personal computers, and disk drive controllers at several systems houses. He has also taught graduate courses at San Jose State University. Mr. Wang received B.S.E.E. and M.S.E.E. degrees from National Cheng Kung University in Taiwan, an M.S.E.E. degree from San Jose State University, and an M.B.A. degree from Golden Gate University in San Francisco. He has also completed courses toward a Ph.D. at the University of California at Berkeley. In addition, he has published a textbook and 26 technical papers and is fluent in Mandarin, Cantonese, and Taiwanese.
Dataquest Incorporated ASIAN SEMICONDUCTOR AND ELECTRONICS TECHNOLOGY CONFERENCE
November 6-8, 1988 Seoul, Korea
1290 Ridder Park Drive, San Jose, CA 95131-2398 (408) 437-8000 Telex 171973 Fax (408) 437-0292
|62agioco.iMG logiree A5EJ
Approaching the Asian Age
APPROACHING THE ASIAN AGE
Tom Wang Director
Asian Components Group Dataquest Incorporated
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
ItoMtooiwG loWMewiil
INDUSTRIAL REVOLUTION OF THE LAST 500 YEARS STARTED WITH . . .
MG iaras/ee:WAw|
SILK
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
laaMtoooMG vmtM^iJS!]
INDUSTRIAL REVOLUTION OF THE NEXT 500 YEARS STARTS WITH . . .
|6a45D04 JMG l<Vg<«e:WAH|
SILICON
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
|B2B4500S.liG IttglrtBaiaiiet
|B2»45006 IMG 1QP<faaHWWN|
Without semiconductor technology, no one will be competitive in the next century!
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
^g»*soo7JMG lore^aewAwt
WHAT HAPPENED IN THE ASIAN SEMICONDUCTOR INDUSTRY IN 1988
Korean semiconductor manufacturers heavily expanded capital spending Taiwan's new start-ups built their own fabs China invested in Wuxi and Shanghai fabs Singapore established Chartered Semiconductor Motorola launched Silicon Harbour project in Hong Kong Philips and Motorola invested in China
pa>45O00MG WP*ffleWAW|
APPROACHING THE ASIAN AGE
Europe Japan
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
B^»<a<ii»M6 wg iwBgl
THE ASIAN AGE IS COMING!
outh Korea
A Taiwan ng [tong
r ^ ^ Philippines Thail^d * ^
Malaysia Singapore
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
DataQuest n n a company of MMMM The Dun &Bradstreet Corporation
WORLD SEMICONDUCTOR OUTLOOK
Gene Norrett Corporate Vice President and Division General Manager
Components Division Dataquest Incorporated
Mr. Norrett is a Corporate Vice President of Dataquest and General Manager of its Components Division. In this capacity, he has direct responsibility for all U.S. research and coordinates European and Japan-based research. Prior to becoming Division General Manager, he founded Dataquest's Japanese Semiconductor Industry Service and was Acting Managing Director of Dataquest Japan K.K. Before joining Dataquest, Mr. Norrett spent 14 years with the Motorola Semiconductor Product Sector, serving in various marketing and management positions. He has traveled extensively in Japan, Hong Kong, Taiwan, Korea, China, and Europe. Mr. Norrett's educational background includes a B.A. degree in Mathematics from Temple University and an M.S. degree in Applied Statistics from Villanova University. He has also taken graduate courses in Marketing from Arizona State University.
Dataquest Incorporated ASIAN SEMICONDUCTOR AND ELECTRONICS TECHNOLOGY CONFERENCE
November 6-8, 1988 Seoul, Korea
1290 Bidder Park Drive, San Jose, CA 95131-2398 (408) 437-8000 Telex 171973 Fax (408) 437-0292
pgegioo6iMG ioreiW6ASej
Approaching the Asian Age
WORLD SEMICONDUCTOR OUTLOOK Gene Norrett
Corporate Vice President and General Manager Components Division
Dataquest Incorporated
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
tonwoiJUS icilWaWiRI
NEW AREAS OF RESEARCH - 1988
Services
Japanese Semiconductor Application Markets
MilAero Technology Analog North American Semiconductor •
Markets
Direct Products
A Decade of Semiconductor Companies IC Europe The Drive for Dominance
Launch Date
2/88 8/88 9/88
12/88
6/88 8/88 9/88
l26i90oe-iUj iop7ffiej*Qnr
AGENDA
• Overview of historical factors
• Status of electronics industry
• Status of semiconductor industry
• Forecasts
• Summary
© 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
|g«i9oai.yi KhaimMdk]
THE FLOW OF SEMICONDUCTOR TECHNOLOGY
Memory Mountains
MtM : — ^ ^ ^ ' ^ — — ^ — ' * _ ^
^1 ' i ^ ^ * ' " W " • » * ^ ^ ^ ^
teiaJMjUS ii*it^4i6BI
WHAT CAN WE LEARN FROM HISTORY?
Worldwide - Millions of Dollars
Previous Recessions Annual Growth/Decline
1967 1971 1975 1981 1982 1985
$ 1,926 $ 2,487 $ 4,496 $14,828 $15,261 $24,823
(1.8%) (3.5%)
(13.70/0) 5.0% 2.9%
(14.7%) Source: Dataquest
© 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
(toi90(S-»«G oaawSTffl
U.S. ELECTRONICS INDUSTRY'S RELATIONSHIP TO U.S. SEMICONDUCTOR
INDUSTRY Percent Change Year to Year
50
40
30
20
10
0
-10
-20
-30
1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990
Souree: Oataquest
i — Semiconaijcior uonsumpiiion
t^AM f >
\ . 1 ^^" Production
\^f^^ '%V
BMWOoe.fcB cato/wgTRI
JAPANESE ELECTRONICS INDUSTRY'S RELATIONSHIP TO JAPANESE SEMICONDUCTOR INDUSTRY
Percent Change Year to Year
70
50
30
10
-10
-30
^ Semiconductor Jk T V * " Consumption ~Jr\
T J " \ Electronic Equipment ' ^ " ^B Production
1972 1974 1976 1978 1980 1982 1984 1986
Souree: Daiaquest
© 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
toiaooTJUG intow^iSBI
OTHER QUALITATIVE FACTORS AFFECTING SEMICONDUCTOR RECESSION
1971 System driver - mainframe computers and defense Industry
1975 Significant double ordering Excess capacity Severe price attrition in commodity logic System driver - calculators, watches, and CB radios
1980-1982 System driver - video games
1985 Significant double ordering Excess capacity Severe price attrition in commodity memories System driver - personal computers
STATUS OF ELECTRONIC MARKETS
© 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
b^woaJiie iap7i»»won|
STATUS OF COMPUTER MARKETS
Emergence of Extended Industry Standard Architecture (EISA) consortium
Major segments of PC market moving in different directions
Shortage of DRAMs limiting '88 growth
286 machines in pricing squeeze
Pa619010.WG 1(VP7/BB:MOrt)
STATUS OF COMPUTER MARKETS U.S. Office Equipment and Computer Rates of Change
Percent 80 TOGO-50-40-30-20-10 0
-10 H -20-1 -30
12/12 Shipments
1 ^ ^ 1/12 Inventory
12/12 Bookings
1 1 1 1 1 P
1982 1983 1984 1985 1986 1987 1988 Sourx: Dopartmeni of Commefce
CMaquesl
© 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
|a»i9(ngjt<6 iiinawgMSgl
STATUS OF COMPUTER INDUSTRY U.S. Computer Inventories in Weel<s of Sales
Weeks 14
13
12
11
10
9
8 '' >v>w 1982 1983 1984 1985 1986 1987 1988
Souree: Dalaquest
I tol^wlUa <Wlf<M:)4<>ft|
1988 ELECTRONICS MARKETS World by Region
A % Change, 1988 over 1987
Japan U.S. Europe Note: Japan and Europe are in local currency to reflect appreciation of yen and ECU
Asia
Souice: Dalaquest
© 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
(BzSiaoiS.Mj 06/17ffe:N(W|
1988 ELECTRONICS MARKETS World by Application
Data Processing
Communications
Industrial
Consumer
Military
Transportation
Total
B i 1987 • 1988
5 10 A % Change
15 20
SDuioe: Dataquest
STATUS OF SEMICONDUCTOR INDUSTRY
© 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
bg190MjliG 1(>07/S»:HOH1
U.S. SEMICONDUCTOR BOOK-TO-BILL RATIO Three-Month Moving Average
Book-to-Bill Ratio
•I 1988 • Souce:WSTS
btiagijtia nihrt»*Ji5H1
EUROPEAN SEMICONDUCTOR BOOK-TO-BILL RATIO Three-Month Moving Average
Book-to-BIII Ratio
Source: WSTS
© 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
teiaoeaJMO lowTweiioin
JAPANESE SEMICONDUCTOR BOOK-TO-BILL RATIO Three-Month Moving Average
Book-to-Bill Ratio
Sowce:WSTS
vm
STATUS OF SEMICONDUCTOR INVENTORIES THE BOOM/BUST CYCLES
Current Actual versus Target Semiconductor Inventory Levels (Computer OEMs)
Days
45
40
35
30
25
20
**^kn ym y
A
^^^^•H Hll"»^
4 ^ 4 * *
• • Current Actua! I M l Target
•«KX ^ \ * * - . . - ^
V ^ Under ^^^
June Aug. Oct. 1987 —
Dec. Feb.
+ April June Aug.
1988 Souice: Dataquest
1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
IteetgoasMG OMPwe-woRi
STATUS OF SEMICONDUCTOR INDUSTRY Captial Spending
Billions of Dollars
16
12
8
ESn ROW • • Europe r>^^ Japan ^ ^ Captives 1 ^ ^ U.S.
1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 Source: Dataquest
btiaceeJHS lolpTiwi^gRl
THE COST OF TECHNOLOGY LEADERSHIP Relative Cost 5
-2 -1 0 1 Years Ahead of "Industry Leaders"
Souice: Intel Cotpoiaion Gordon kiloore
© 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
b^milUA iiMi»iM\
STATUS OF SEMICONDUCTOR INDUSTRY
Current High-Volume Contract Price
U.S. Japan Europe
256K DRAM 1M DRAM 80286-10 74LS245 74HC245 256K EPROM
$ 3.85 $20.50 $31.00 $ 0.30 $ 0.25 $ 4.00
$ 2.62 $15.30 $41.05 $ 0.41 $ 0.34 $ 4.56
$ 5.15 $17.50 $28.00 $ 0.30 $ 0.28 $ 4.20
Sotaoe: DQ Mondtqr
|kK9Dze.ii6 cemm:De>i
STATUS OF MOS MEMORY INDUSTRY Billions of Dollars
1975 1980 1985
Some:
© 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
bi^reaJUfe i^7i»8jtofi|
STATUS OF TOTAL SEMICONDUCTOR INDUSTRY
Worldwide Shipments (Millions of Dollars)
1987 1988 Total Semiconductor 36,449 49,509 10 MOS Memory MOS Logic MOS Microdevices Bipolar Logic Bipolar Memory Analog Discrete and Opto.
28,619 39,403 6,019 10,633 5,950 7,612 4,770 4,107
565
7,005 4,918
652 7,208 8,583 7,830 10,016
Percent Change 35.8% 37.70/0 76.7% 27.9% 46.9% 19.7% 15.4% 19.1% 29.1%
Source: Dataquest
FORECASTS
© 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of Thie Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
DATAOUEST'S FORECAST RECORD
Region
Japan North America Europe ROW
October 1987 Percent Change
Currency
Yen $
ECU $ •
1988F
20.5 23.0 19.0 41.4
li^teiiJUG lonomTOfi
• •
1988A
23.7 32.3 24.6 56.9
^^fliTTft' P I i f p Iff n!
ift*iteteJU6 i<h<ba8»wr|
OUR FORECAST RECORD
Worldwide Semiconductor industry (Millions of Dollars)
Forecast Date
10/87 1/88 4/88 7/88 10/88
1988
47.542 46,099 45,343 49,362 49,509
Percent Growth 88 over 87
23.7% 21.1% 24.2% 35.4% 35.8%
1989
47,364 46.348 49.564 54,621 54.571
Percent Growth 89 Over 88
(0.4%) 0.5% 9.3%
10.7% 10.2%
Souroe: DMaqueet
1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
tetiao3a.<ia tiW7W:>k!iBt
SEMICONDUCTOR INDUSTRY FORECAST Eight-Quarter Rolling
World Shipments
-2.5
Actual
Sequential Percent
151 125
10 75
5 25
inF^S ^S
Forecast
^ B
Ql Q2 Q3 Q4, I Ql Q2 Q3 Q4, , Ql Q2 Q3, 1 ' ' 1 ' ' T '
1988 1989 1990 Souoe:
btyjcJUUi iitH^»toJ»6fll
SEMICONDUCTOR INDUSTRY FORECAST
Assumptions for 1989 Semiconductor Growth
r^20.0% ^10.0% =.3.0%
U.S. Real GNP 2.6 Business Fixed Investment 8.2 U.S. Computer Industry
Growth 12%
2.0 6.9
1.3 5.9
7.5% 5.0%
1Mb DRAM Prices ASP ($) Units (Millions)
9.50 650
8.16 530
8.50 480
Soufce: Date ucht
1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
|t*iitoyJU6 i t f idtoj f l
SUMMARY
• We do expect a slower industry in 1989
• DRAM supply < demand until Q2 1989
• Capital investment slowing
• Higher electronics growth predicted for Asia than for the West
1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
pgagioos.iMG lomJBe A ^
Approaching the Asian Age
ASIAN SEMICONDUCTOR INDUSTRY UPDATE
Tom Wang Director
Asian Components Group Dataquest Incorporated
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive San Jose CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
ige34002.IMG 10re4«eW>iH)
AGENDA
• Asian semiconductor industry outlook
• Semiconductor manufacturers In Asia
• Asian semiconductor goals and status
• Key issues in 1989
• Summary and conclusion
^B2fta4O03.IMG HV2*/aB:WAH |
ASIAN SEMICONDUCTOR INDUSTRY OUTLOOK
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
|glP40CM.IMG IQf2Vft6 WAh 1
• Market growing drastically
• Production increasing significantly
• Manufacturing moving offshore
• Business opportunities growing
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited Dataquest Incorporated, a company of The Dun & Bradstreet Corporation
1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
|2ffW006IMG lQf24meWIWI|
ESTIMATED WORLDWIDE SEMICONDUCTOR CONSUMPTION
(Billions of U.S. Dollars)
1987 1988 1989 1992
ROW Europe Japan United States
$ 4.0 $ 6.4 $14.3 $11.9
$ 6.1 $ 8.2 $19.5 $15.7
$ 7.3 $ 8.8 $21.3 $17.2
$12.7 $11.3 $30.5 $24.8
Source: Dataquest
|B»34007.UG 1(V24y8e:WAfl 1
PRODUCTION INCREASING SIGNIFICANTLY FROM ASIA
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited Dataquest Incorporated, a company of The Dun & Bradstreet Corporation
1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
|2ea4008.IIJG 1QP4mflWA>t|
SEMICONDUCTOR PRODUCTION
(Millions of Dollars)
Company 1986 1987 1988'
Samsung GoldStar Hyundai KEG UMC •Estimated
$170 $ 48 $ 5 $ 50 $ 68
$317 $ 68 $ 40 $ 78 $ 90
$900 $120 $150 $100 $110
Source: Dataquest
|g63*003.IMG lQg4WaWAW|
MANUFACTURING MOVING OFFSHORE
Main Reasons for Moving Offshore
Before: Low labor cost
Now: Low labor cost + superior talent + closeness to market
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
|gai*cno.rMG tofzvMWAWi
FUNCTIONS OF OFFSHORE FACILITY
Before: Assembly and testing
Now: Design + fabrication + assembly and testing
1283401 |.tMG 1QttVaeiWAM[
BUSINESS OPPORTUNITIES GROWING
High-Technology Business Opportunities
* Semiconductor manufacturing
• Semiconductor equipment and materials manufacturing
Systems manufacturing
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
|Bge340l2IMG Wg4ffle:WAH|
SEMICONDUCTOR MANUFACTURERS IN ASIA
pe>4013JMG 1QPVMWAHJ
SEMICONDUCTOR MANUFACTURERS -SOUTH KOREA
• Samsung
• Goldstar
• Hyundai
• Daewoo
• KEG
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
ig«>4014.tMG 1(Vg4WflWAM|
SEMICONDUCTOR MANUFACTURERS -TAIWAN
• ERSO • UMC • TSMC • Fine • Rectron • Winbond • HMO • AMPI
jgeMOISJUG ,.„^Q[?,*fM-WAH|
SEMICONDUCTOR MANUFACTURERS -HONG KONG
• Elcap
• Hua Ko
• RCL
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
l aPWI tMO 10g4W»W*Hl
SEMICONDUCTOR MANUFACTURERS -SINGAPORE
Chartered
HP
SGS-Thomson
tgea40i7JMij i(y^4»ewAN|
SEMICONDUCTOR MANUFACTURERS -CHINA
• Wuxi • BETF • Beijing Semiconductor Factories #3,
6, and 109 • Shanghai #5, 7, 14, and 19 Radio
Components Factory • Li shan • Others
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
I t o w o ^ B I M G 10/g4me:WAW|
ASIAN SEMICONDUCTOR GOAL
Catch up in four years
[82834019 •JG 1QWff lBWAH|
FOUR REQUIREMENTS TO MEET THE GOAL:
Government Support
Local Demand
/ Strategic < Alliances/
Partnerships
1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
|B2«3402P.WG lttfa4ffle:WAH|
TO MEET THE GOAL:
Corporate R&D
Government Support
' ^ — / Strategic < Alliances/
Partnerships
Local Demand
iaM3«gmiG wwatTgiun
Government is heavily involved in semiconductor business.
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
IBiMMazMG waumMiS!}
TO MEET THE GOAL:
Corporate R&D
Government Support
Local Demand
/
/ Strategic ( Alliances/ \ Partnerships
paweatUG lore wewAwi
CORPORATE CAPITAL AND R&D SPENDING
(Millions of U.S. Dollars)
1984 1985 1986 1987
Samsung GoldStar Hyundai
$176 $112 $138
$220 $107 $141
$150 $ 90 $ 43
$130 $109 $ 71
Soiree: Dataquest
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
jbaaawa* IMG M/a4/8e:WAH |
TO MEET THE GOAL:
Government Support
Corporate \ R&D /
Local Demand
/ Strategic ( Alliances/
Partnerships
| 2a340» . IMG IQPAroaWAHl
STRATEGIC ALLIANCES/PARTNERSHIPS
Foundry
Licensing
Acquisitions
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
182634026 MG WV2</8a:WAN |
TO MEET THE GOAL:
—V Corporate \
R&D /
Government Support
Local Demand
/ Strategic ( Alliances/
Partnerships
i2«3«0e7.tMG 1Qg4»6WAHj
SEMICONDUCTOR CONSUMPTION - ASIA
(Millions of Dollars)
1985 1986 1987 1988*
South Korea Taiwan Hong Kong Singapore
'Estimated
$436 $496 $334 $271
$799 $696 $478 $350
$1,296 $1.051 $ 593 $ 510
$1,815 $1,576 $ 890 $ 714
Source: Dataquest
1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive San Jose CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
South Korea Taiwan Hong Kong Singapore China
CHECKLIST - 1988
Government Support
Strong Strong Medium Medium/Strong Strong
Corporate R&D
Strong Medium Weak Weak/Medium Medium
Strategic Alliances/
Partnerships
Strong Medium Weak Strong Weak
IZttMOZeiUG tOTMreeWANI
Local Demand
Strong Strong Medium Medium Medium
Source: Dataquest
|B283402aMG tQra«8B:WAN|
THREE ADDITIONAL ELEMENTS TO MEET THE GOAL
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
iaB34030IMG IQP^/MWAKt
KEY ISSUES IN 1989
Recession
Protectionism
Currency value appreciation
New marketplace
Japanese influence
1283*033 IMG lOreA/WWWH
SUMMARY
Asia will be the worldwide leader in semiconductor consumption growth.
Asian semiconductor industry's worldwide influence will grow.
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
IgawaM-iMG i{y24/6ewANl
SUMMARY
• Asia will be the worldwide leader in semiconductor consumption growth.
• Asian semiconductor industry's worldwide Influence will grow.
• Asia will be a significant producer of: - MOS memory - Chip sets - Consumer ICs
ig«3403S.IMG IQgAWBWAHj
SUMMARY
• Asia will be the worldwide leader in semiconductor consumption growth.
• Asian semiconductor industry's worldwide influence will grow.
Asia will be a significant producer of: - MOS memory - Chip sets - Consumer ICs
Asian semiconductor-related industry will grow
•
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
IBfcMoaip'iMG %on*mw'M*\
CONCLUSION
1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
DataQuest a company of The Dun & Bradstreet Corporation
n n a company of
KOREAN SEMICONDUCTOR INDUSTRY UPDATE
J.H. Son Senior Industry Analyst Asian Components Group Dataquest Incorporated
Mr. Son is a Senior Industry Analyst for Dataquest's Asian Components Group. He is responsible for Korean semiconductor and electronics industry research and manages Dataquest's office in Seoul, Korea. Prior to joining Dataquest, Mr. Son worked for Goldstar Semiconductor Ltd., most recently as General Manger of International Sales. Previously, he was General Manager of Planning and Marketing. Earlier, he held a variety of other management and engineering positions at Goldstar. Mr. Son received B.S.E.E. and M.S.E.E. degrees from Hanyang University in Korea. He has also taken courses toward a Ph.D. in Electrical Engineering.
Dataquest Incorporated ASIAN SEMICONDUCTOR AND ELECTRONICS TECHNOLOGY CONFERENCE
November 6-8, 1988 Seoul, Korea
1290 Bidder Park Drive, San Jose, CA 95131-2398 (408) 437-8000 Telex 171973 Fax (408) 437-0292
paaglOO* JMlG 11Wg1ffi6-AS£|
Approaching the Asian Age
KOREAN SEMICONDUCTOR INDUSTRY UPDATE
J.H. Son Senior Industry Analyst
Asian Components Group Dataquest Incorporated
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
AGENDA
• Korean Electronics Industry Outlook
• Korean Semiconductor Industry Update
• Semiconductor Companies in Korea
• Key Issues in 1988
• Summary and Conclusion
KOREAN ELECTRONICS INDUSTRY OUTLOOK
1988 Dataquest Incorporated November 7 — ReproducUon Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
OVERVIEW
1960s - Introduction period - Simple assembly (Radio, B/W TV) - Semiconductor packaging - 0 . 8 % of GNP(1968)
1970s - Growth period - Export oriented policy - 1st, 2nd, 3rd plans for electronics promotion - Wafer processing - 3 1 times, expansion in production!'70 vs '79) - 2 . 5 % of GNP(1980)
1980s - Maturity period - 4th plan for electronics promotion - Bring up 3 strategic items
(Semiconductor, Computer, Communication) -14 .7% of GNP(1987) - Top 6th in electronics export
GDP GROWTH
Real GDP Growth Rates(%)
1936 1987 1988*
South Korea Taiwan Hong Kong Singapore China
Japan United States Europe
* Es:iTi3'.etJ
quest Incorporate
124 11 0 11 0 1,9 8 0
2.4 2 2 2 5
d November 7
12.0 10 1 126 6.9 9.7
2.5 3.1 2 2
SKJJ'C
— Reproduction
10 0 7,3 8.9 5.5 9.1
3 0 2 8 2,0
e Oaiaguesi
Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
KOREAN ELECTRONICS INDUSTRY ( I )
(S Billion)
1984 1985 1986 1987 1988* AGR
Production
Export
Import
Consumption
* Estimated
8.4
4.6
3.2
7.0
8.5
4.6
2.9
6.8
12.1
7.4
4.6
9.3
17.4 21.0 25.7%
11.2 13.0 29.7%
5.9 8.0 25.7%
12.2 16.0 23.0%
Source: Dataquest
KOREAN ELECTRONICS INDUSTRY ( H )
(S Billion)
Production 1985 1986 1987 1988*
-GNP 83.7 95.3 118.6 N/A
- Electronics Total 8.5 12.1 17.4 21.0
-Shares of Electronics (7o) 10.2% 12.7% 14.7% N/A
Export
- Export Total 30.3 34.7 47.3 52.0
- Electronics Total 4.6 7.4 11.2 13.0
-Shares of Electronics (%) 15.2% 21.3% 23.6% 25.0%
* Estimated
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
ELECTRONICS PRODUCTION ^
Consumer Color VTR Cassette MWO
Industrial PC Monitor Telephone
Parts & Components Semiconductor CRT Transformer
1985
672 510 484 258
183 177 192
1,141 394 219
1986
1,001 758 584 542
436 223 258
429 544 406
1987
1,349 1.088 1.214
709
479 573 463
2.083 821 522
1 (SM)
AGR(%)
41.7 46.1 58.4 65.8
61.8 79.9 55.3
35.1 93.6 54.4
Source: Oataauest
ELECTRONICS EXPORT
Consumer Cassette VTR Color MWO
Industrial Monitor PC Telephone
Parts & Components Semiconductor Magnetic Tape CRT
1985
384 205 405 214
168 148 113
1.049 229 196
1986
500 592 687 483
182 395 183
1,317 432 245
1987
1,136 895 977 639
449 379 344
1.893 540 324
(SM) AGR(%)
72.0 108.9 55.3 72.8
63.5 60.0 74.5
34.3 536 286 M
Source Dataquest ^
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive San Jose CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
ELECTRONICS IMPORT
(SM) 1985 1986 1987 AGR(7o)
Consumer Recor(Jer 77 114 173 49.9
Industrial Measuring Ins't 116 167 171 21.4 Business computer 109 177 164 22.7 Disk 54 100 136 58.7
Parts & Components Semiconductor
Finished 340 687 1,102 80.0 Material 663 763 1.030 24.6
CRT 117 192 260 49.1 Source: Dataquest
ELECTRONICS CONSUMPTION
(SM) 1985 1986 1987 AGR(%)
Consumer Refrizerator Color TV Amp/Stereo
Industrial ESS Business computer Measuring Ins't
Parts & Components Semiconductor
Finished Material
CRT Transformer
360 271 217
427 134 125
432 664 315 195
345 318 208
317 220 179
799 765 491 435
418 375 279
314 210 185
1,296 1.037
757 536
7.8 17.7 17.0
(14.2) 25.2 21.7
73.2 25.0 55.0 65.8
Source Dataquest
© 1988 Dataquest Incoiporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
KOREAN SEMICONDUCTOR INDUSTRY UPDATE
STATISTICS OF KOREAN SEMICONDUCTOR INDUSTRY
(S Billion)
1984 1985 1986 1987 1988* AGR
• Production 1.3 1.1 1.4 2.1 2.7 21.0%
• Export 1.3 1.0 1.3 1.9 2.2 14.7%
• Import 0.3 0.3 0.7 1.1 1.4 41.6%
• Consumption 0.3 0.4 0.8 1.3 1.8 56.3%
* Esti meted
Source Dataquest
1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
SEMICONDUCTOR CONSUMPTION
(SM)1984 1985 1986 1987 1988" Total Semiconductor
Total IC Bipolar Digital
Memory Logic
MOS Digital Memory Micro Logic
Linear Total Discrete Optoelectronics
303.9 432.3 793.0 176.0 318.9 582.1 29.5 41.5 75.3 2.1 3.0 4.8
27.4 38.4 70.6 67.2 133.9 244.2 22.8 45.4 83.3 18.2 38.9 73.7 26.1 49.7 87.2 79.3 143.4 262.5
121.0 98.1 187.9 6.9 15.3 23.0
1.291.4 992.8 118.8
7.7 111.0 438.9 151.0 136.8 151.0 435.1 273.7
24.9
1.815.0 1.390.0
161
617
612 385.0 40.0
* Estimated source: Dataquest
CAPITAL SPENDING (5 FAB
1984 Facility 421 R & D 42
463 Semiconductor Sales 114
1985 1986 429 275 61 53
490 328
175 299
COMPANIES)
(S Million)
1987 1988* 304 511 77 164
381 675
513 1,280
Capital Spending (7o of Sales) 406% 280% 110% 74% 52.7%
* Estimuted ^^^^^^ D,^!.^ue^^
© 1988 Dataquest Incorporated November 7 - Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
COMPETITION IN MEMORY CHIPS
Samsung Goldstar Hyundai
1M DRAM
Mass Prod.
Wafer Size
Capacity (Wf/D)
4M DRAM
Mass Prod.
2Q'88
6"
600
4Q'89
1Q'90
6"
600
2Q'90
Source
1Q*90
6"
300
2Q'90
: Dataquest
JOINT R & D PROJECT
4M DRAM Project
16M/64M Project
. •86-89 • ETRI, Sannsung, Goldstar, Hyundai
. S100M
. '89-91
. MOST, MOC, MTl, ETRI.
• Samsung, Goldstar, Hyundai, Daewoo
. S100M
. 1992-2000
Source Dataquest
1988 Dataquest Incorporated November 7 - Reproduction Prohibited
1G DRAM
10M G/A
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
SEMICONDUCTOR TECHNOLOGY DEVELOPMENT TRENDS 1940-2000
ULSH
VLSI
LSI
MSI
IC Discrete Transistor
/Diode 1940
• United States and Japan South Korea
16Mb
• Transistor Transistor
1950 1960 1970 1980 1990 2000 Source: "87 Korea Electronic Times.
SEMICONDUCTOR MANUFACTURERS IN KOREA
1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
Sales
Rank
Products
SAMSUNG
$316millionC87) New Products 1M DRAMs | S900million('88) 512K EPROMs
22 256K SRAMs
256K DRAMs-25% CTV/VTR ICs
64K DRAMs -20% CMOS Logic -25% New Project Linear ICs -10% Line 3 Transistors -20%
opacity 4" BtP -360,000 (Wafers/year) 5" MOS-600,000
6" MOS-200,000
Line 4
Codec/Combo
1M DRAM 1Q*89
4M DRAM 1Q'90
Source: Dataquest
Sales
Products
Capacity (Wafers/year)
GOLDSTAR
$ 69 million('87) S120million('88) TTL-30% Gate arrays-20% 74HC/HCT-10% Hybrids -30% Linear ICs -10%
4" BIP -200,000 5" MOS-250,000 6" MOS-150,000
New Products
New Proiect Step 1 (88-90)
Step 2 (92-93)
Steps (95-96)
1M DRAMs 256K DRAMs 2Kx8 SRAMs 8Kx8 SRAMs Fast TTLs
S2.2 billion 1M DRAM 0.8.^ 6" MOS-540,000
4M DRAM 0.6 u 6"^ 8"-1,080,000
Mega DRAM 04u 6"~-8"-1,620,000
Source Dataquest © 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
HYUNDAI
Sales
Products
$ 40 million{'87)
$150miHionC88)
New Products 1M DRAMs
256K DRAMs-507o New Project
16K SRAMs -15% Line 4
Mask ROMs -15%
MPUs -10%
Others -10%
1M/4M DRAM
1Q'90
6" MOS-480.000Wf/y
$450 million
Capacity 5" MOS-250.000
(Wafers/year) 6" MOS-300.000 Source: Dataquest
DAEWOO
Sales S10 million('88) New Products ICs for PC
ICs for telecom Products Audio ICs-507o
Custom -50%
Capacity 4" BIP -90.000
(Wafers/year) 4" MOS-90,000 Source Dataquest
1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
KEC
Saies
Products
J78 minion
Trarsistors - TOT* Uneaf 1C4 - 30%
SalM Channels Domestic • direct Intemationai •
through Toshiba
New Products Linear ICs Capacity 4" BIP • ZOOJXO
(Wafii^s/year)
Fairchilij
ivtolorola
Signetics
KMI
Tokyo Silicon
Anam
ASSEMBLY
•86 '87 Revenue Revenue
$ 52M
222
95
6
61
148
S 45M
266
52
7
63
191
HOUSES
Assembly Start
1966
1967
1967
1970
1972
1972
Employee
550
5.200
2.500
500
1,560
9.700
Capital
S 20M
10
40
6
3
40
Source: Oataquesi
1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
• Gol(Jstar
• Samsung
• LSI Logic . VTI Korea • Daewoo • Hyundai • Tl Korea . SGS-Thonsc
DESIGN CENTERS
Start
1^83 1986 1987 1987
1988 1988 1988 1988
Products
G/A, Std Cell G/A G/A Std Cell Std Cell G/A G/A G/A. Std Cell
Tech. Source
LSI Logic —
LSI Logic VTI Zimos LSI Logic Tl SGS-Thomson
Design Rule
3/7. 2;/
3u 1
3u, Iti, 1.5/7
2u
3//. 1.8/7
1.5,f7
N/A N/A
Source: Dataquest
MASK MAKERS
Hanryu Development
• Asia Cement
1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
SILICON WAFER SUPPLIER
U\MI • 4': 5" Polished W&f er • S 0.7 million Sales('87) • 900,000 Sq. inches • Licensed from Siltech
KOSIL . 4': 5': 6" Polished Waber . S 5.6 million SalesC87) • 5.000,000 Sq. Inches • Licensed from Monsanto
Source: Dataquest
GaAs SUPPLIERS
Samml • 1988
• S 65 million invest
Kukje . 1988
• S 70 million invest
Source Dataquest
1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
KEY ISSUES IN 1988
KEY POSITIVE ISSUES IN 1988
• Government support • Capital spending
• Local demand • GNP growth
• Technology perception
Source DataquMi
1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
KEY NEGATIVE ISSUES IN 1988
Currency value appreciation '
Protectionisnn
Competition from other-NICs
U.S.-dependent industry
Source Oatapuest
SUMMARY
• Korean semiconductor industry's worldwide
influence will grow
• Korea will be Asian leader in semiconductor
consumption growth
• Korea will be a significant DRAM producer
Source Dataquest
1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose,_CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
CONCLJUSION
1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
DataQuest n n a company of MMMM TheDun&BradstreetCorporation
Young Soo Kia
Executive Vice President
Saasung Seaiconductor & Telecoaaunicationa Co., Ltd.
Mr. Kia is Executive Vice President of Saasunc Seaiconductor
& Telecoaaunications Co.. Ltd. Prior to Joining Saasung. he
vas Vice President of the Solid State Developaent Center at
Honeyvell.
Mr. Kia received an B. S. degree in Physics froa the Drury
College and an M. S. degree in Physics froa the University of
Arkansas, Fayetteville, both in U. S. A.
1290 Ridder Parl< Drive, San Jose, CA 95131-2398 (408) 437-8000 Telex 171973 Fax (408) 437-0292
TECHNOLOGY INNOVATION IN KOREA - WITH A FOCUS ON SEMICONDUCTOR & COMPUTER -
YOUNG-SOD KIM EXECUTIVE VICE PRESIDENT
SAMSUNG ELECTRONICS CO., LTD.
AGENDA
• KOREAN ELECTRONICS INDUSTRY AT A GLANCE
• TECHNOLOGY LEVEL OF KOREAN ELECTRONICS INDUSTRY
- WITH A FOCUS ON SEMICONDUCTOR & COMPUTER -
• STATUS OF RESEARCH INSTITUTE AND R&D INVESTMENT
• DEVELOPMENT PROSPECTS OF KOREAN ELECTRONICS TECHNOLOGY
• REQUIREMENTS FOR KOREAN ELECTRONICS DEVELOPMENT
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
CHANGES IN MAJOR INDUSTRIES IN KOREA
PREVAILING
INDUSTRIES
HIGH TECH
INDUSTRIES
1 9 6 0 s
TEXTILE
CEMENT
FERTILIZER
ELECTRICITY
OIL REFINERY
ELECTRICITY
ELECTRONICS (CONSUMER)
PLANT ENGINEERING '
1 9 7 0 s
IRON & STEEL
PETROCHEMISTRY
SHIP BUILDING
TEXTILE
ELECTRONICS
ELECTRONICS
(INDUSTRIAL)
AUTOMOBILE
1980s
ELECTRONICS
(SEMICONDUCTOR. COMPUTER)
MACHINERY
AUTOMOBILE
SEMICONDUCTOR
COMPUTER
OPTO ELECTRONICS
PRECISION CHEMISTRY
KOREAN ELECTRONICS INDUSTRY IN THE NATIONAL ECONOMY
I I AGRICULTURE. FORESTRY & FISHING
I I MINING & MANUFACTURING
• ELECTRONICS S 56.6 BILLION I I SERVICES
S 118.6 BILLION
S 35.2 BILLION
22.0%
28.9 7( /o
J:
44.3 7( 70
^4.8%)
14.67o
29.8%
—-(5.8%)
55.6%
1977 1982 1987 (SOURCE ; BANK OF KOREA. ElAK)
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
KOREAN ELECTRONICS INDUSTRY IN THE WORLD: PRODUCTION
1982 (S 296 BILLION) 1987 ($477 BILLION)
KOREA (1.1%)
U.S.A. (45.0%)
E.C. (25.9%)
JAPAN (20.6%) OTHERS (7.4%)
U.S.A. (38.2%)
E. 0. (25.5%)
JAPAN (25.7%)
OTHERS (7.0%)
KOREA (3.6%)
(SOURCE : MACKINTOSH YEAR BOOK)
FACTORS LEADING TO KOREA'S PRESENT POSITION IN THE WORLD ELECTRONICS MARKET
• CONGLOMERATES' COMMITMENT TO ELECTRONICS INDUSTRY
(TECHNOLOGY & CAPITAL)
• SUCCESS IN SECURING AND TRAINING TECHNICAL MANPOWER
• EXECUTIVES' OUTSTANDING LEADERSHIP
• EMPLOYEES' CONCERTED EFFORTS
• WILLINGNESS TO MEET THE CHALLENGES OF THE FUTURE
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
EVALUATION OF TECHNOLOGICAL COMPETITIVENESS
DESIGN
CONSUMER ELECTRONICS
(COLOR TV)
INDUSTRIAL ELECTRONICS
(COMPUTER)
PARTS & COMPONENTS
( I C )
PRXESS
D
O
X
D
D
D
PRODUCT
PRODUCTION
ELECTRONICS TOTAL D
D
O
X
X
X
X
PRICE/PERFORMANCE
o D
X
D
D
D
D
RELIABILITY
D
D
X
D
D
D
PRODUCTIVITY
D
(NOTE) O : COMPETITIVE WITH DEVELOPED COUNTRIES D : APPROACHING TO DEVELOPED COUNTRIES' LEVEL X : FAR BEHIND LEVEL OF DEVELOPED COUNTRIES
D
O
D
D
D
D
D
DESIGN
D
D
X
X
D
D
D (SOURCE : EIAK)
STATUS OF KOREAN SEMICONDUCTOR TECHNOLOGY
DESIGN
PROCESS
GEOMETRY
PRODUCT ( •MEMORY
I • MICRO
1 • ASIC
TECHNOLOGY & PRODUCT
PRESENT
• MEMORY (DRAMs) : APPROACHING LEADING EDGE
• OTHERS : INFANT STAGE
• DRAM TECHNOLOGY (TECHNOLOGY DRIVER)
1u~2u
• 256K/1M DRAM • 4 BIT MCU • 6,000 GATE ARRAY
FUTURE
• MEMORY : HIGH SPEED ASIC MEMORY
• ASIC LOGIC & MICRO PRODUCT
• SPECIAL UNIT PROCESS FOR HIGH DENSITY PRODUCT
• HIGH PERFORMANCE PROCESS TECHNOLOGY
0.5u~1u
• ASIC MEMORY • 8 BIT MCU, 16 BIT MPU • 1 0 , 0 0 0 - 1 2 , 0 0 0 GATE ARRAY
STANDARD CELL
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
STATUS OF KOREAN COMPUTER TECHNOLOGY
SUPER MINICOMPUTER
TERMINAL
FDD/HDD
MODEM
TECHNOLOGY & PRODUCT
P R E S E N T
• PRODUCTION OF 32BIT
MULTI-FUNCTION COMPUTER
• IN-HOUSE DESIGN
• INTELLIGENCE
• GENERAL-PURPOSE TERMINAL
• PRODUCTION OF HIGH-DENSITY
FDD & LOW-DENSITY HDD
• IN-HOUSE DESIGN & PRODUCTION
OF HIGH-SPEED MODEM (9,600BPS)
FUTURE
• IN-HOUSE DESIGN
• HIGH-RESOLUTION TECHNOLOGY
• MECHANISM & PRECISION MOTOR
• DESIGN OF ULTRA-HIGH SPEED
MODEM
(SOURCE: ElAK)
COMPARISON OF R&D INVESTMENT
15%-
10%-
• I INVESTMENT RATIO TO SALES (%)
ELECTRONICS TOTAL ('86)
KOREA
4.1
U.S.A.
6.0
JAPAN
5.5
SEMICONDUCTOR r87)
KOREA
18
U.S.A.
16
JAPAN
18
SOURCE : DATAQUEST KOREA INDUSTRIAL RESEARCH INSTITUTE Dataquest Incorporated, a company of The Dun & Bradstreet Corporation
1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
AGGRESSIVE CAPITAL INVESTMENT BEING DONE IN KOREA 100%-
CAPITAL INV/SALES
50%-
_
359
1 >
•^10
1
47
1
C KOREA) >65
(U.S.) 1
"84 "85 '86 •87 KOREA: SAMSUNG. HYUNDAI. GOLDSTAR ONLY (SOURCE: SAMSUNG)
'88 CFCST)
BACKGROUND OF KOREAN AGGRESSIVE R&D INVESTMENT • KOREAN COMMITMENT TO EARLY ENTRANCE INTO HIGH-TECH INDUSTRY
- BUILDING UP INDUSTRIAL LEADERSHIP FOR THE FUTURE
- ENHANCEMENT OF COMPETITIVENESS
• KOREAN'S POTENTIALITY IN HIGH TECH INDUSTRY
- HIGHLY EDUCATED MANPOV^ER
- SOLID GROUND OF MANUFACTURING CAPABILITIES
• DEVELOPED COUNTRIES' PROTECTION OF INTELLECTUAL PROPERTY RIGHTS
- PATENTS AS A V^EAPON
- TRADE RESTRICTION
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
MAJOR INDEXES IN KOREAN SCIENCE TECHNOLOGY DESCRIPTION
R&D INVESTMENT
RESEARCH MANPOWER
ORGANIZATION FOR
R&D
PATENT
• R&D INVESTMENT TO SALES RATIO (%)
• R&D INVESTMENT PER RESEARCHER (W MIL)
• NUMBER OF RESEARCHERS PER 1.000 PEOPLE
• PRIVATE RESEARCH INSTITUTES
• RESEARCH COOPERATIVES
• PATENTS REGISTERED
[MPORT' ' °^^ 1 • ^^^^^^ ^^ TECHNOLOGY IMPORTS
'83
0.66
19.4
0.80
124
15
2.433
247 ^—^—^—^
'85
1.23
27.9
1.01
183
22
2,268
454
•87
2,20
59.5
N/A
455
35
2,330
637
'.SOURCE : KOREA INDUSTRIAL RESEARCH INSTITUTE)
EXAMPLE OF RESEARCH INSTITUTE OPERATION - SAMSUNG GROUP -
SAMSUNG ADVANCED
INSTITUTE OF TECHNOLOGY
• COMPUTER & COMMUNICATIONS
• OPTOELECTRONICS & MECHATRONICS
• NEW MATERIALS & DEVICES
COMPUTER MATERIALS ELECTRONICS SEMICONDUCTORS
• EL£CTR0N1CSR&D CENTEE • SEMICONDUCTOR • COMMUNICATIONS • ELECTRON DEVICES "
• ELECTRO MECHANICS « • CORNING MECHANICS " • DATA SYSTEM CENTER" • AEROSPACE INDUSTRY «
CHEMICAL
TEXTILE
GENETIC ENGINEERING
4 R&D CENTERS
MECHANICS PLANT
CONSTRUCTION
6 R&D CENTERS
: : ENGINEER TOTAL : 4.000
(AS OF DEC. 1987)
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
GOVERNMENT-FUNDED RESEARCH INSTITUTES
• KOREA ADVANCED
INSTITUTE OF SCIENCE &
TECHNOLOGY
• ELECTRONICS &
TELECOMMUNICATIONS
RESEARCH INSTITUTE
• KOREA ELECTROTECHNOLO-
GY RESEARCH INSTITUTE
• OTHERS (10 INSTITUTES)
MAJOR AREAS OF RESEARCH
• GOVERNMENT-INITIATED R&D PROJECTS
• BASIC SCIENCES
• TECHNOLOGY SUPPORT TO PRIVATE ENTERPRISES
• R&D. MARKET SURVEY & ANALYSIS ON SCIENCE TECHNOLOGY
• TECHNOLOGY ADVICE & INFORMATION SUPPORT TO PRIVATE ENTERPRISES
• ELECTRIC MATERIALS AND QUALITY ASSURANCE
• SURVEY & ANALYSIS OF TECHNOLOGICAL TRENDS
• BASIC SCIENCE-ORIENTED R&D
KOREAN TECHNOLOGY ROAD MAP
SEMICONDUCTOR
*
%
|OPTO& iDIGITALIZATION
• ELECTRONIC TELECOM. SYSTEM
• COMPUTER (W/S LEVEL PC)
^
• AVIONICS
• ISDN
• BIOTECHNOLOGY
• SUPERCOMPUTER
• HOME AUTOMATION
• MECHANIC TELECOM SYSTEM <^ * "'^H-END CONSUMER ELECTRONICS
• PERSONS COMPUTER (DIGITAL TV. COP)
• LOW-END CONSUMER ELECTRONICS (C-TV, REFRIGERATOR)
I
1970s 1980s 1990s
Dataquest Incorporated, a connpany of The Dun & Bradstreet Corporation 1290 Bidder Park Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
WHAT SHOULD BE DONE FOR HIGH-TECH INNOVATION IN KOREA
PRtVATt SECTOR INVESTMEKT
< ^
• DEVELOPMENT AND EXPANSION OF
BASIC TECHNOLOGY
• SECUREMENT OF HIGH-TECH MANPOWER
(SYSTEM INTEGRATING ENGINEER)
• DEVELOPMENT OF INFRASTRUCTURE
^ \ . GOVERNMENT LEADERSHIP
• SEMICONDUCTOR TECHNOLOGY
• VERTICAL SYSTEM TECHNOLOGY
• CUSTOMER ORIENTED
KOREAN ELECTRONICS INDUSTRY
WILL BE
IN THE LEADING EDGE
BY 1990s
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
DataQuest B B The Dun SBradstrect Corporation
CHANGING PC MANUFACTURING AND MARKETING STRATEGIES
Dr. Irving T. Ho President
Institute for Information Industry
Dr. Ho is President of the Institute for Information Industry (III) . The Ill's mission is to upgrade the ROC's information industry and help speed up the country's computerization program. Dr. Ho also serves as the Executive Secretary of the Information Promotion Committee of Executive Yuan, which is the ROC cabinet. Prior to working at III, he was Director General of the Hsinchu Industrial Science-Based Park. Dr. Ho came to Taiwan from the United States to set up the Hsinchu Industrial Park. Previously, he held a variety of engineering management positions at IBM. While at IBM, he won the IBM invention award 12 times. He holds many U.S. patents and has written numerous technical disclosures and publications. Dr. Ho received an M.S. degree and a Ph.D. degree in Electrical Engineering from Stanford University.
Dataquest Incorporated ASIAN SEMICONDUCTOR AND ELECTRONICS TECHNOLOGY CONFERENCE
November 6-8, 1988 Seoul, Korea
1290 Ridder Park Drive, San Jose, CA 95131-2398 (408) 437-8000 Telex 171973 Fax (408) 437-0292
|Beagiooi IMG 1tt>^tmASE^
Approaching the Asian Age
CHANGING PC MANUFACTURING AND MARKETING STRATEGIES
Dr. Irving Ho President
Institute for Information Industry (III)
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
(m
CHANGING PC MANUFACTURING
AND MARKETING STRATEGIES
Dr. Irving Ho
President
Institute for Information Industry
I M S T m m FOR MKMWU-nON MOUSTRYI
CONTENT
• CURRENT STATUS OF ROC'S PC INDUSTRY
• PRODUCT DEVELOPING TREND AND STRATEGIES
• CHANGING MANUFACTURING AND MARKETING STRATEGIES
•^• i lNSTITUTE FOR INFORMATION INOUSTRYI
1 -
^oon o,.w „°p'3?uest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
m.
CURRENT STATUS OF R.O.C. (1987)
POPULATION (M)
GNP PER CAPITA <US$)
PC INSTALLATION (1,000 SETS)
PC PER 1,000 INHABITANTS
PC PRODUCTION/EXPORT VALUE (US$M)
PC PRODUCTION/EXPORT QUANTITY (1,000 SETS)
i
19.7
4,989
350
18
868/761
2,098/1,958
IINSTITUTE FOR INFORMATION INDUSTRYl
EXPORT OF PCs IN R.O.C.
1.500 •
1.000
2.M0
1983 1987 1988 (ESTIMATED) 1992 IFORCASTED)
IINSTITUTE FOR INFORMATION INDUSTRYl
2 -
i9Qn OA^ n Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
PRODUCT MIX (1987)
386 l>C
"others" inckidas Atari. Commodore etc...
rf."""*",
ilft)
•INSTITUTE FOR INFORMATION INDUSTRYl
US$M R.O.C. PC DISTRIBUTION - VALUE
800
BOO
400
200
1 { AFRICA
1 1 ASIA-PACIFIC
j 1 AMEmCA
r ~ l EUROPE ^<
393 42
187
157
/ - - "
,^>' .^^^
. - '
GR 1986-1987
94% 114%
79%
51%
147%
1987
IBlNSTITUTE FOR INFORMATION INDUSTRYl
3 -
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
ra, R.O.C. PC DISTRIBUTION - QUANTITY
1.000
2,000
SETS
1,600 V
1,200
800
400
I I AFRICA
I I ASIA-PACIFIC
GR
1986-19B7
76%
' 1 1 EUROPE ^ ^ O ^
1.113
97
411
6 i 3
. - i . ' " • ' ' j^"
X'
168
»e
1.208
117% 6 3 %
3 8 %
104%
1986 1987
•INSTITUTE FOR INFORMATION INDUSTRYI
'12^
MARKETING CHANNEL
1987
MNC - MULTINATIONAL COMPANY
IINSTtTUTE FOR INFORMATION INDUSTRYI
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
PRODUCT TREND
PC
n,o.c.'s DinECTION
PC PER im ERA us
•INSTITUTE FOR INFORMATION INDUSTRYI
iiil ' EVOLUTION OF PC INDUSTRY
CONFIGURATION IN R.O.C.
1989 1992
IINSTITUTE FOR INFORMATION INDUSTRYI
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
ira; KEY FACTORS TO MEET THE FUTURE
10-^INSTITUTE FOR INFORMATION INDUSTRYl
.>""«-.
ira. '.RRIJ
CHANGING MANUFACTURING STRATEGIES
• QUALITY FIRST
• INTRODUCTION OF SMT
• APPLICATION OF ASIC
• ADAPTABLE TO DIFFERENT REQUIREMENT
• OVERSEAS PRODUCTION
- II -
IINSTITUTE FOR INFORMATION INDUSTRYl
- 6 -
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
" • I . V**
CHANGING MARKETING STRATEGIES
• PROMOTE WORLDWIDE BRAND IMAGE
• ESTABLISH OVERSEAS DISTRIBUTION CENTERS
• PENETRATE INTO NEW EMERGING MARKETS
• ESTABLISH OVERSEAS SERVICE NETWORK
I I -K;NSTITUTE FOR INFORMATION INDUSTRYI
Cift) v. . ,v»
• A NEW ASPECT IN R.O.C.
1988 OEM & OFFSHORE PRODUCTION 50%
NICHE PRODUCT - * - i ^ 50% \ . y^ STANDARD PRODUCT
am 13-
IINSTITUTE FOR INFORMATION INDUSTRYI
- 7
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
DataQuest n n a company of MMMM The Dun &Bradstreet Corporation
EMERGING INTELLECTUAL PROPERTY ISSUES
Judith K. Larsen, Ph.D. Senior Industry Analyst Research Operations
Dataguest Incorporated
Dr. Larsen is a Senior Industry Analyst with Dataquest's Research Operations Group. Her responsibilities include tracking emerging technologies and analyzing strategic issues that cut across all the technologies that Dataquest covers. Intellectual property rights and technology transfer are among her areas of special concern. Before joining Dataquest, Dr. Larsen was with Cognos Associates, where she directed the policy research program in electronics. As Senior Research Scientist, she worked in the area of national and international technology transfer and conducted studies of policy alternatives in the electronics industry. Dr. Larsen began her career as an Engineer at Philco-Ford and later spent 16 years with the American Institutes for Research. She serves on several national advisory panels on topics related to emerging technologies and the electronics industry. Dr. Larsen received an M.A. degree from Syracuse University and a Ph.D. degree from the University of California.
Dataquest Incorporated ASIAN SEMICONDUCTOR AND ELECTRONICS TECHNOLOGY CONFERENCE
November 6-8, 1988 Seoul, Korea
f
1290 Ridder Park Drive, San Jose, CA 95131-2398 (408) 437-8000 Telex 171973 Fax (408) 437-0292
IBgttglOOB.IMG 1(Wgl/a8J>SE^
Approaching the Asian Age
EMERGING INTELLECTUAL PROPERTY ISSUES
Judith Larson Senior Industry Analyst Research Operations
Dataquest Incorporated
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
ptwoDUMB laiomxgn
AMD will not tolerate the unlicensed manufacture and sale of products resulting from our substantial investment in research and development.
Jerry Sanders AMD
PMZOOSJMG io«Q«iXO?t
You could lose a ton of money and market share if you don't care .. . about your intellectual property.
William Keefauver AT&T
© 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
bwWIffltlft tMoalMlAfil
IVe are going to protect our intellectual properties and license them to ensure that we are, in fact, protecting the future.
Arthur Goldberg IBM
lt»4iotajya MojttUfli
IVe spend a lot of money on research and development, and well do anything to protect it
Thomas Dunlap Intel
© 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
PftiaOtWJMG IQPMBCiSOn
We are not willing to subsidize R&D development lor our competitors.
James Smaha National Semiconductor
P64aGi»jMiS imanwXn
Intellectual property rights protect one of NEC's most important assets - the creative abilities of our employees.
Hank Josefczyk NEC
© 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of Ttie Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
fesMOOTjMi lonaiwlAai
The patent budgets of several of my clients are up significantly.
David Lovejoy Fleisler, Dubb, Meyer & Lovejoy
KMMMjUi i »<a»MiW|
Costs of not protecting your intellectual property rights may be ... astronomical. IVs hard to overestimate the damage of doing nothing. It can talce away the lifeblood of a company.
Jack Brown Brown & Bain
© 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
IbMisioa na iato<MJ>ai
INTELLECTUAL PROPERTY: What is it?
BwJBitJtiS T kiMteiMH
PATENT
• Applies to any process, machine, or manufacture
• Gives the owner the right to make, use, or sell the application of an idea
© 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
BtamyMj itnitmi3K\
PATENT
The invention must be:
• Useful
• Novel
• Unobvious
waamuta lanaMiJgfl
PATENT
Administered by the U.S. Patent and Trademark Office (Dept. of Commerce)
Can cost $5,000 or more
Lasts 17 years
© 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
|g«2in3jMi lomitoign
COPYRIGHT
• Covers the "expression" of an idea, not the basic idea
• Gives the owner the right to copy a particular expression
IHttm^jMa idia<t«iAft|
COPYRIGHT
The work must be:
• Original
• Recorded in tangible form
• An expression of an idea
© 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
Btoieitjtifc iikalitlAAl
COPYRIGHT
•
Administered by the U.S. Copyright Office (Library of Congress)
Application fee is $10
• Lasts for owner's lifetime plus 50 years (individual) or for 75 years (corporation)
imansjMS laoawJHI
TRADEMARK
Symbol, word, or name used to identify goods or services
Registration includes drawing of symbol or words
© 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
BS««1TJMi »«ll>»»»:lig?l
TRADEMARK
Administered by the U.S. Patent and Trademark Office
$200 filing fee
Lasts 20 years or as long as in use
IzwwnaJMG ittpysBxA^^
TRADE SECRET
Information that is:
• Not generally known
• Useful in business
• Gives the owner an advantage over competitors
© 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
hitanajiii iJto<»«i>i!r|
TRADE SECRET
• Laws defined by states
• No nationwide standards
• No consistent years of protection
jaS420gOJMG 1QH)3We±Afl|
SEMICONDUCTOR CHIP PROTECTION ACT
• Protects a mask work fixed in a semiconductor chip
• Sui generis law (one of a kind)
© 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
BS4agi.iMS imaMiSm
SEMICONDUCTOR CHIP PROTECTION ACT
• Administered by the U.S. Copyright Office
• $20 application fee
• Lasts 10 years
• Never brought to court
BM2<g2JM6 lOWMtiroi
INTELLECTUAL PROPEFTTY: Why is it important now?
© 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
|25«a<B3JMG ittPateaiTSI
WHY IS IT IMPORTANT NOW?
Increased global competition
)B2&<2CC4.MG MWQfte^LABI
U.S. PATENTS GRANTED TO U.S. AND FOREIGN INVENTORS
Thousands of Patents
60
50
40
30
20
10
liiiiiifmnm^ v.X^^^ Att ^^
\\V P^«' xmnti "m "*ui
''*'ll, U.S. Inventors
'lUm. '^""iiir,\m\\mm^^
^ ^ Foreign Inventors
^
1960 1964 1968 1972 1976 1980 1984 1987
Source: U.& Patent and Tiademartc Office
1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
|fle&g02SJMG 10«Qffi6;LAR|
U.S. PATENTS GRANTED TO JAPANESE INVENTORS
Thousands of Patents
18 1R ID
1A l l
1 0 1 ^
m l U 0 0
c u
** 0
n
^ ^
1 / f
1970 1972 1974 1976 1978 1980 1982 1984 1986
Source: U.& Patent and Ttademailt OTfioe
PATENTS GRANTED FOR INTEGRATED CIRCUITS
Number of Patents
7,000
6.000
5,000
4,000
3,000
2,000
1,000
n n United states —nmn-Japan-
West Germany .France United Kingdom
AWNV ;svv . ^ ^ ^ v ^ ^
^ ^ W ^"^
Al^^^^ Att ^^^
A^ \ ^ »^«^'
,^\S^ Att ^ ' ,\tt ' Si ^^ '
• • • • • • • • • • • • • j l . l i Y t t \ a i H i H i a i a i B i a i H i J i i H i B
BCCCCRSQCCCCOeQI
iB2S4a02BJMG WWafflB.lABI
1975-1977 1980-1982 Source: National Sc ierce Board
© 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
|g5<2027JMG lOfOJaBlARl
COMPANIES OBTAINING MOST U.S. PATENTS IN 1975
General Electric
Westinghouse Electric
General Motors
IBM
AT&T
1,001
617
584
568
543
Source: U ^ Patent and 'nademarfc Offioo
lawaogBJMG iQiDyae:iAHi
COMPANIES OBTAINING MOST U.S. PATENTS IN 1987
Canon Kabushiki 847
Hitachi 845
Toshiba 823
General Electric 779
Philips 687
Source: U.a Paert and Trademark Office
© 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
pS42oeQiMG iQwyaflljSyi
NUMBER OF U.S. PATENTS HELD BY SELECTED COMPANIES
1987
IBM AT&T Philips Hitachi Siemens Toshiba Motorola Matsushita
10,266 10.055 7,707 7,527 7,333 5,109 3,990 3,710
Tl Mitsubishi NEC SGS-Thomson Fujitsu Hewlett-Packard Varlan
3,473 2,492 2,208 1,758 1,563 1,125 1.029
Souice: U.& Pmeit and Dademark OHice
BMaOMIMS inlMW6:ljgn
WHY IS IT IMPORTANT NOW?
• Increased global competition
• Shorter product life cycles
© 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
p542031JMG IQWywlAnl
TIME BETWEEN NEW PRODUCT INTRODUCTIONS
• Logic families = 5.0 years
• Microprocessor families = 3.0 years
• ASICs = 1.3 years
Souice: Dataquest
|2S420a2JMG IQWyBBlABl
WHY IS IT IMPORTANT NOW?
Increased global competition
Shorter product life cycles
Greater R&D investment
© 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
iBg54a033JMG iamaffie:LAR|
U.S. HIGH TECHNOLOGY MANUFACTURING INDUSTRIES' EXPENDITURES
FOR INDUSTRIAL R&D Billions of Dollars
50
40
30
20
10 s n n i « » « « " ^ jUHUlW I I I " ||IUIIIHH,W""'
.«« ^ ' SV ^ , V X ^
\\\ ^ ^^^ r W^ oS? ** * v * 1
^ ^ o(S
A\VV ftX^^^^
1960 1964 1968 1972 1976 1979 1981 1983
Souice: National Science Board
I2542034.IMG 1ttPyftBJ>fl^
WHY IS IT IMPORTANT NOW?
Increased global competition
Shorter product life cycles
Greater R&D investment
U.S. Court of Appeals for the Federal Circuit (CAFC)
1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Parl< Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
|a5<2035JMG 1003ft61AS1
WHY IS IT IMPORTANT NOW?
Increased global competition
Shorter product life cycles
Greater R&D investment
U.S. Court of Appeals for the Federal Circuit (CAFC)
$
|gS4g036.IMG IQPVMlAfll
SETTLEMENTS IN INTELLECTUAL PROPERTY CASES
Texas Instruments has collected $264 million for DRAM patent infringements through the first half of 1988. Fujitsu paid IBM a "very substantial" settlement in 1983 and additional "significant" revenue in 1987. SJS-Thomson collected "as much as" $150 million from several memory manufacturers.
© 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive. San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
|B2S4a037.WG WWQffla:LAfl|
INTELLECTUAL PROPERTY: What are today's key issues?
|as4aQ38.rMG inDVBeUOn
KEY ISSUES
Current litigation in the semiconductor industry - AMD V. Samsung, Atmel, Gazelle Microcircuits,
Cypress Semiconductor - Samsung v. Monolithic Memories (AMD) - National v. Cypress Semiconductor, Aspen
Semiconductor - Intel V. NEC - Zilog V. NEC
(Continued)
© 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
^5*2039JMG IQPVBBaARl
KEY ISSUES
• Current litigation in the semiconductor industry - Intel V. Hyundai, Vitelic - Intel V. Hyundai, Atmel, International
CMOS Technology, Cypress Electronics, Pacesetter Electronics, Ail-American Semiconductor
- Intel V. AMD
^2040JMG lOWMWelAffl
KEY ISSUES
• Current litigation
• Final regulations to the Semiconductor Chip Protection Act
© 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation •1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
12542041JMG TCkHWiuwl
KEY ISSUES
• Current litigation
• Final regulations to the Semiconductor Chip Protection Act
• Intellectual property issues in the Trade Bill
leawaxaMG K»i»iwB:L>gl
INTELLECTUAL PROPERTY: What to do?
© 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
pS4«K3.IUG lOPVaillARl
STRATEGIES
• Evaluate your technology
• Introduce a patent program
• Develop intellectual property resources
• Consider joint action
(te&42044.MG ICWaB:lAB|
Ideas = Intellectual Property
© 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
KB KnumtOSi
Intellectual Property = $
t © 1988 Dataquest Incorporated October 17 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
E)ataQuest n n a company of MMMM The Dun &Bradstreet Corporation
In Ku, Kang Senior Managing Director
Goldstar Seaicondutor Ltd.
Dr. Kang is a Senior Managing Director of Goldstar Seaiconductor Ltd. and UH and Business Developaent Group of C4C Sector of Goldstar Co,. Ltd. Prior to the position, he was a Managing Director of Goldstar TelecoBMinication Co., Ltd.
Dr. Kang received Ph.D. degree in Electronic Engineering froa Univ. of New Mexico in the States in 1967.
1290 Ridder Park Drive, San Jose, CA 95131-2398 (408) 437-8000 Telex 171973 Fax (408) 437-0292
|Bgegl006 •ylG lOPtWalASE^
Approaching the Asian Age
EMERGING TELECOM MARKET OPPORTUNITIES
Dr. In Ku Kang Senior Managing Director
Goldstar Co., Ltd.
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
EMERGING TELECOM MARKET
OPPORTUNITIES
NOV. 1 9 8 8
I N - KU KANG
G o l d S t a r C o . , L t d
CONTENT
WORLDWIDE TELECOM TREND
WORLDWIDE TELECOM MARKET
ASIA TELECOM STATUS AND SUBJECT
ASIA TELECOM W\RKET
NICS TELECOM PRODUCT ('87) IN ASIA
1987 NICS TELECOM MARKET PER SEGMENT
NICS LONG-TERM TELECOM PLAN
KOREA ISDN PLAN
HOT NEW PRODUCT AREA WORLDWIDE
- 1 -
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
WORLDWIDE TELECOM TREND
RAPID GROWTH IN COMPUTER & COMMUNICATIONS . INCREASING COWUNICATIONS 4 INFORMATION ACTIVITIES
DE-RECULATION IN TELECOMMUNICATIONS . SEPARATING OPERATION FROM REGULATION
INTERNATIONAL STANDARDIZATION ( I S O , C C I H ) . COMPLIANCE WITH STANDARDS
TECHNOLOGY FUSION . NETWORK INTELLIGENCE INCREASING
VARIETY OF VALUE-ADDED SERVICE TO ISDN . SOFTWARE SOLUTION i EMPHASIZING SERVICES
timL m^n
S7 Ht.T, i;e iii;T, 9E 1\tJ.
•m
N. «!ERli:fl E a «. B-f'OPE ES3flSW
- 2 -
E 3 OTHERS
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
fiSIA TELECOB STfiTOS
-' ELECTRONIC TELECOWUNICfiTIONS FALLING BEHIND
- DELAY OF TELECOM DEVELOPMENT PLAN BY FINANCIAL PROBLEMS
Tel. Density per 1(1 population B E
TELEPHONE DENSITY IN ASIAN COUNTRIES (198G)
£ 0 -
S 5 '
5Q '
*S-
4 .0 .
3 5 •
3 0 .
£5 4 V —t-
eo
IS
IQ
5
Q
• fywrniJ
n>M,(MJ^* *cn)^in)>e>-...1
•*Ti|HW*i'"'
-l F - .
..•j.i:<Mid..
«IQ<«ifi!
i j - A ^ 6T<tttC -
,;*,««iMiPl....l, ; fWWft ;
i *: ••rntwuT"
SCJQQ *-QOO BQpa eaao LDOOQ isooa KGQC
•Others: China, Thailand per capata GDP(USt) India, Indonesia
ASIA TELECOM SUBJECT
THE DEVELOPEMENT OF THE TELECOM IMFRASTRUCTURE . BACK-BONE TRANSMISSION SYSTEM TO EXTENDED SERVICE TO A REMOTE AREA . TELEPHONE POPULARIZATION . TELECOM MODERNIZATION
R&D ACTIVITY . BUILD UP THE CAPABILITY OF HIGH TECHNOLOGY
MARKETING . REDUCTION OF THE GAP BETWEEN SUPPLY AND DEMAND FOR ALL SERVICES
TRAINING . IMPROVEMENT AND INCREASING TECHNICAL MANPOWER
- 3 -
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
10000
ASIA lELECOL 11ARKE1
CHINA HOWGKQ INDlft JAPftN KOREA 6 [WSAP TfllilAN OTHER
;•? m.
COUNIRY
9S no. ^ ? 2 I ! K I .
NICS TELECGh FROHUCT ('37) IH RSIR
1 m,m\. ..^ ••• ^' y
/yyX^^
TOTAL = If1 12.30(
tilCS (18.22:;)
OTHERS (3.03?;)"' -• - .
ilHGftPORE (10.4':
M O H G (17.S;;
TAiyftH (27.4;:)
H (44.4;i)
Total = ^\\ 2-30
- 4 -
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
'-i«' NICS 1ELEC0« flfiRi;El PER SEGHENI
• SUIIC. EQ F' 1 /. ^ r i r T :
I-. .1 nadir
HOWGKONG
^ BSTEX. m
kOP£f^ glMGr^POK!
COIJNIRY
E a MJS. EQ
TAIMN
E 3 fEL. EQ
N I C S LONG-TERM TELECOM PLAN
t l? : i r 1 l^E:^ 1 l'?£." I 1? ~r?i5? [ I :•-?•: 1 yg-?: I r ? ? : 11 J-S" 113?4 ; i j ? ; . i i?'?g. 11*? j " ! i??:? H
SiWflpoKt
~ i — T • T • ^ • • • i ' — p — ^ — ^ ^ — V — i —
3 2]
HMJ^ - I<53U^
TBiWflN
t*|trt
' : : : • . . ' r** . '^ '>y.: . :••• l [ TttthL ] p
[. I J :
\ y •= r i
. ' . ] . • . . . • . . • [ • ] • . [ • . y ^
1 . • • ^ • - - • - ; • ; • <
W::': f .' .' V? ' - KT^"*^ I H ^ H
• * 1
! i i i i - - - ' ' f t * i J
t---:----.^:^..-v'> ! p.;;;:^:::[«t-t<Pi;ri
•— ~ 1 ^ i f 1. . • . • . • . • . • . • . • . - . ) i 1
i , •- • : • : • / , • , • ' , • , • • : • ; • / , , •
;. .. . Kr^acM
.1. i: \
1 ^ 1 : ••/•--[::•:•• y.-.^--:-]
•grwniM
•^ c: .:i V
^-'i'^JA'/y'/.-y//, '-•:.7/.; .'•.•>
C -r*tnL 1 B i
i: ; j. J \ \ \ ]
• • . . ' 1 • . ^ . .• . . . . • . • . ••". •, • .
[ T t l ^ L j
[ I
•t
f
i 1
'j 5 1
IfSJ^^SLM
f i ]••
' C>f«*Ffci'*<]H
-
, ' .
PePWlflRlJflnsO M«t**'«'l?fmtiJ cpriMiyoTimJ
- 5 -
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Parl< Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
KOREA ISDN PLAN
PRE-ISDN (1988-1991)
- TELEPHONE NETWORK EXPANSION
- INFRASTRDCTDRE DIGITAL TELECOM NETWORK CONSTROCTION
- INFORMATION i TELECOM NETWORK EXPANSION
TRIAL (1991-1336)
- INFRASTRDCTDRE DIGITAL TELECOM NETOORK COMPLETION
- DP-GRADE TELECOM NETWORK BY COWON CHANNEL SIGNALING
- APPLICABLE ISDN .STANDARDIZE ISDN TERMINAL
CBWERCIAL (1997-1I8R)
- NATIONWIDE ISDN
- INFRASTRDCTDRE BROADBAND ISDN CONSTROCTION
HOT NEW PRODUCT AREA WORLDWIDE
UNIT: »
ITEM
T-1 HULTIPLEXER LANS VOICE HAIL SYSTEM FAX VSAT DIGITAL MICROWAVE RADIO DACS ISDN TERMINAL ADAPTER LOCAL LOOP PRODUCT SS #7 SYSTEM
88 KKT
413 2.518 513
1,841 119 61 218 57 488 135
91 MKT
748 5.692 998
2,885 251 146 474 384 776 328
CAGR(88-92)
16.4 % 22.4 % 18.1 » 17.8 % 28.5 % 24.4% 22.6 % 52.8 % 18.8 % 24.1 %
- 6 -
Dalaquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
DataQuesl I P B ThcDun&BradstrcetCorporation
TAIWAN'S NEW MANUFACTURING FRONTIER
Dr. Ding-Yuan Yang President
Winbond Electronics Corporation
Dr. Yang is President of Winbond Electronics Corporation. He founded Winbond in 1987 along with several other senior managers from ERSO. Prior to cofounding Winbond, he was General Director of Planning at Industry Technology Research Institute (ITRI). Earlier, he served as the Deputy Director of ERSO, in charge of R&D activities in computer systems. Before that, he worked at Harris Semiconductor, where he was a key project leader in the technology transfer program with RCA. Dr. Yang graduated from the National Taiwan University. He received a Ph.D. degree from Princeton University and a master of Management Science degree from Stanford University,
Dataquest Incorporated ASIAN SEMICONDUCTOR AND ELECTRONICS TECHNOLOGY CONFERENCE
November 6-8, 1988 Seoul, Korea
1290 Ridder Park Drive, San Jose, CA 95131-2398 (408) 437-8000 Telex 171973 Fax (408) 437-0292
4 jaaagiocofciG nygi«B>SE|
Approaching the Asian Age
TAIWAN'S NEW MANUFACTURING FRONTIER
Dr. Ding-Yuan Yang President
Winbond Electronics Co.
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
TAIWAN'S NEW MANUFACTURING FRONTIER
Dr. Ding-Yuan Yang
PRESIDENT
WINBOND ELECTRONICS CORP.
NOV. 7,1988
,
TAIWAN '8 NEW MANUFACTURING FRONTIER
CONTENT
I. ASSEMBLY COMPANIES
II. ERSO
III. FRONT END MANUFACTURING
IV. DESIGN COMPANIES
V. SOME STATISTICS AND ESTIMATION
VI. SUMMARY AND COMMENTS
TAIWAN'S NEW MANUFACTURING FRONTIER/ WINBONO ELECTRONICS CORP.
P, 1
- 1 -
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
I. ASSEMBLY COMPANIES
• ASSEMBLY OPERATIONS BEGAN IN 1967 IN EXPORT PROCESS ZONE WHEN LABOR WAS VERY INEXPENSIVE
•THERE ARE ABOUT 30 COMPANIES ENGAGED IN ASSEMBLY, OF WHICH 43% ARE FOREIGN - INVESTED COMPANIES
• PLASTIC DIP: 90% CERAMIC DIP : 10% SMALL OUTLINE AND PGA : LITTLE
• NEW FRONT END MANUFACTURING SPURS NEW INVESTMENT IN ASSEMBLY CAPACITY, PARTICULAR FOR HIGH PIN COUNT PACKAGES
TAIWAN'S NEWIMNUFACTURING FRONTIER/ WINBOND ELECTRONICS CORP.
P. 2
I. ASSEMBLY COMPANIES MAJOR INDEPENDENT ASSEMBLY COMPANIES
P 3
COMPANY
ADVANCED EEMCONDUCTOH B-ECTRONICS
OniEMT SEMICONDUCTOR
ELECTflONICS
aLtCONWARE PREQSION INOUSTflY
UNQSSN PRECISION rJQUSTRr
T*LENT ELECTRONICS
CHINO-EXEL TtCHNOLOGY
CAPACITY * M/MON
m
15
7
7
4
S
PACKAGE FORM
P - DIP,SO)C,PLCC,QFP
P - DIP.SOIC,PLCC,PQA
C - DIP.OFP,SIDE - BRAZE
P - DIP,SOIC.PtCC,0FP
p - DIP.SOtC.PLCC.TO - 92
P - OIP.SOIC.PLCC
P - DIP.SOiC.PLCC
' lepiNEQuiVALErvrT
TAIWAN'S NEW MANUFACTURING FRONTIER/ WINBOND ELECTRONICS CORP.
- 2
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
II. ERSO (ELECTRONICS RESEARCH & SERVICE ORGANIZATION)
• MAJOR DRIVING FORCE IN WAFER FABRICATION. IC DESIGN AND COMPUTER TECHNOLOGY DEVELOPMENT
•TOTAL NO. OF EMPLOYEE : ABOUT 1700 PERSONS
• ANNUAL BUDGET: NT$1,200 MILLION(ABOUT US$ 41.5M)
• PILOT PRODUCTION TERMINATED IN OCT. 1988
TAIWAN'S NEWklANUFACTURING FRONTIER/ WINBOND ELECTRONICS CORP.
P. «
II. ERSO
ERSOS PILOT PRODUCTION
• 1 2uTECHN0L0GY
• 2u SI-GATE
• 3.5u Si -QATt TECHNOLOGY
• 5u SI-GATE TECHNOLOGY
• TRANSFERED 7u TECHNOLOGY FROM HCA
• ERSO ESTABLISHED
I I I I 1 i . I I i - . I _ t 1 i L I . 1974 75 76 77 78 79 '80 '61 '82 M '84 '85 '86 '87 '88
• UMC ESTABLISHED • TSMC ESTABLISHED • S ^ * < ESTABLISHED \ JJ'XOJf^,^^
COMPANIES SET UP
TAIWAN'S NEW klANUFACTURING FRONTIER/ WINBOND ELECTRONICS CORP.
P 5
- 3
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
II. ERSO
• MAJOR SPIN-OFF
• UNFTED MICROELECTRONICS CO. (UMC)
. -TAIWAN SEMICONDUCTOR MANUFACTURING CO. (TSMC)
- SYNTEK DESIGN TECHNOLOGY
-WINBOND ELECTRONICS CORP.
-TAIWAN MASK CO. (DEC. 1988)
-SIUCON INTEGRATED SYSTEM (SIS)
TAIWAN'S NEWMANUFACTURtNG FRONTIER/ WINBOND ELECTRONICS CORP.
P. 6
III. FRONT END MANUFACTURING
• ERSO(STARTED IN 1977, TERMINATED IN 1988)
• UMC(STARTED IN JAN. 1982)
•TSMC(STARTED IN JULY 1987)
• HUALON MICROELECTRONICS CORP.(HMC) (STARTED IN JULY 1988)
•WINBONi ELECTRONICS CORP. (STARTED IN OCT. 1988)
•ADVANCED DEVICE TECHNOLOGY(ADT) (STARTED IN 1982)
• AMPI(STARTED IN AUG. 1988)
TAIWAN'S NEW MANUFACTURING FRONTIER/ WINBOND ELECTRONICS CORP.
P. 7
- 4
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
III. FRONT END MANUFACTURING
CAPACITY:
1 1 1 1 1875 1«eO 1985 1990
100.3M0K ••.««>•< BtSO • — • "
, '« • • • . • •«< 10.6-.30K UUC • 0
10.6'.10K
TGWC • ' 10.6',30K
• >
10.5\3OK HHC • ' 10.S',30K
• •
1 SOURCE ERSO
1 TAIWAN'S NEW MANUFACTURING FRONTIER/ • WINBOND ELECTRONICS CORP.
1 P. 8 _ _ _
III. FRONT END MANUFACTURING
CAPACrTY:
WINBOND
ADT
AMPI
1 1975
1 taw
I00,4'.(K
• •
1 19(5
1 1990
I0,5-,20K
100,4V*K
•
SOURCE EflSO
TAIWAN'S NEW MANUFACTURING FRONTIER/ WINBOND ELECTRONICS CORP.
P. 9
5 -
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
III. FRONT END MANUFACTURING
PRODUCT UNE
MICROCOMPUTER COMPONENT
B)SO X
UMC X
TSMC
HMC X
WINBONO X
ADT
AMPI
TEl£COMMU-MCATK3N
X
X
X
X
CONSUMER
X
X
• * : •
^ •
i • * • .
MEMORY
X
X
X
FOUNDRY CUSTOM OESiON
X
X
X
X
X
OTHERS
miO STOR
POWER IC
SOURCE: ERSO
P. 10
TAnVANS NEWIfANUFACTURING FRONTIER/ WINBOND ELECTRONICS CORP.
III. FRONT END MANUFACTURING
REVENUE(US$ M)
1987
ERSO 31.30
UMC 87.50
TSMC 4.00
HMC
WINBOND
ADT N.A.
AMPI
* Forecast
p 11
1988* 1989* 1990*
27.12 16.9 0
117.97 149.8 200
34.00 83.0 124
62.0 100
52.0 80
17.00 21.0 26
13.6 17
SOURCE : ERSO
TAIWAN'S NEW MANUFACTURING FRONTIER/ WINBOND ELECTRONICS CORP.
.—.
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
IV. DESIGN COMPANIES
•THERE ARE ABOUT 50 COMPANIES ENGAGED IN 10 DESIGN
-IC MANUFACTURING COMPANIES: WINBOND.UMC, HMC
•DESIGN CENTERS SET UP BY SYSTEM COMPANIES: SERTEK. TATUNG, PROTON, ...ETC.
•rC COMPANIES WITHOUT FAB.: SYNTEK, SIS, HOLTEK, ...ETC.
• DESIGN CENTERS SET UP BY FOREIGN SEMICONDUCTOR COMPANitS(OR THEIR DISTRIBUTORS): Tl, PHIUPS, HITACHI, ...ETC.
TAIWAN'S NEW MANUFACTURING FRONTIER/ WINBOND ELECTRONICS CtXtP.
P. 12
IV. DESIGN COMPANIES: IC COMPANIES WITHOUT FAB.
REVENUE(US$M)
SYNTEK
HOLTEK
SIS
OTHERS
* Forecast
1987
15.63
8.44
0.12
—
1988*
21.19
11.46
20.34
10.37
1989*
26.44
14.24
30.00
16.00
SOURCE
1990*
33.00
18.00
37.00
20.00
: ERS
P, 13
TAIWAN'S NEW MANUFACTURING FRONTIER/ WINBONO ELECTRONICS CORP.
7 -
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
IV. DESIGN COMPANIES(con't)
ISSUES FACING THE DESIGN COMPANIES
• OVERLAP OF PRODUCT LINES
• EXPERTISE NOT OBVIOUS
• IS TSMC A RELIABLE SUPPLIER? IN TERMS OF PRIORITY, ALLOCATION, PRICING. ...ETC.
• NOT EAGER TO WORK WITH FRONT- END MANUFACTURERS BECAUSE OF OVERLAP OF PRODUCT LINES AND MARKET
• IS MINI-FAB A SOLUTION FOR FURTHER GROWTH?
To be continued.
TAIWAN'S NEW MANUFACTURING FRONTIER/ WINBOND ELECTRONICS CORP.
P. 14
P. 15
V. S O M E STATISTICS AND ESTIMATION (MARKET SIZE AND IMPORT/EXPORT)
(UNIT: US$ M)
IMPORT
CONSIGNMENT
COMSUMPTION
PRODUCTION DOMESTIC EXPORT
C A R R I E D - I N
ESTIMATED IC DEMAND
EXPORT
1985 (1:40)
4 8 1 . 6
167.8
313.8
48 .4 25.4 23.0
37 .6
376 .7
718 .5
1986 (1:38)
789-1 211.7
577.4
94 .8 61.2 33.6
70 .9
709 .6
562 .9
1987 (1:32)
1306.8
285.9
1020.9
117.6 57.9 59.7
119.8
1198.6
774 .5
SOURCE: ROC CUSTOM OFFICE, ERSO
TAIWAN'S NEW MANUFACTURING FRONTIER/ WINBOND ELECTRONICS CORP.
- 8
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
VI. SUMMARY & COMMENT
•THE GROWTH OF ELECTRONIC/INFORMATION INDUSTRY INDUCES HIGH MARKET DEMAND
• FRONT END MANUFACTURING CAPACITY WILL TRIPLE FROM 1987 TO 1990
• COMPANIES EXPRESSLY EMPHASIZE IN PRODUCT DEVELOPMENT AS MAJOR STRATEGY
• COMPETITION WILL BE VERY KEEN AS COMPANIES LOOK AT THE SAME PRODUCTS AND MARKET FOR THE NEXT 3 YEARS
To be continued.
TAIWAN'S NEW MANUFACTURING FRONTIER/ WINBOND ELECTRONICS CORP.
P. 16
VI. SUMMARY & COMMENT(con't)
•THE SUCCESS OF NEW COMPANIES MAY ENCOURAGE MORE INVESTMENT IN SEMICONDUCTOR MANUFACTURING
• DESIGN COMPANIES FACE GREAT UNCERTAINTY AS COMPETITION INCREASES AND FOUNDRY CAPACITY BECOMES LIMITED
• OPEN QUESTION: WHEN WILL TAIWAN PRODUCE DRAM?
TAIWAN'S NEW MANUFACTURING FRONTIER/ WINBOND ELECTRONICS CORP.
P. 17
9 -
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
Dataoyest n n a company of MMMB The Dun &Bradstreet Corporation
Dr. Chang is the executive managing director 9f Daewoo Telecoi Coipany. He is
responsible for Daewoo's semiconductor op«ration. He received B.S. degree froi Seoul
National Liniversity and M.S. and Ph.D. froi the (%t« State Univa^ity in Coluibus. ( io
In the United States, all degrees in elecctronics eftgine^lng. Before he joined Daewoo
he worked for IBM In the States for several years ia the s«Uconductor field.
1290 Ridder Park Drive, San Jose, CA 95131-2398 (408) 437-8000 Telex 171973 Fax (408) 437-0292
^MaiOtO.MG lOftl/MASEt
Approaching the Asian Age
ENTERING THE ASIC MARKET Dr. Hong Jo Chang
Executive Managing Director Daewoo Telecom Co. Ltd.
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
EateriQg the ASIC Market
iong Jo Chang Executive Managing Director Daewoo Telecoi Co., Ltd.
CONTENTS
A S I C STATUS I N KOREA
INTRODUCTION OF DAEWOO'S A S I C B U S I N E S S
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
ASIC STATUS m KOREA
OVERVIEW
Users' interest rapidly growing
Design centers booming
ASSP market growing fast
CAD S/W R&D active in institutes
Government's support to industries
A S I C C O M P A N I E S I N K O R E A
CCIMF'ANY
ANAM
D A E W O O
GOLD STAR
HYUNDAI
MJL
SAMSUNG
AS I C START YEAR
8T
8 6
8 4
8 6
8 7
84
GATE ARRAY
m\
'0
~'
'^
PRODUCT
STD PLD CELL
^
*
*
*
*
.:: *
MCU
3*:
»
D E S I G N E R S
5
3 5
N/A
N/A
2
4 0
LOCAL FAB
31:
3*:
»
W:
AFFIL. COMPAN
VTI
Z y M O S
LSI L O G I C
LSI LOG I C
A L T E R A
SOURCE : ELECTRONIC PARTS AND CONPONENTS MONTHLY
- 2 -
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-239S / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
A S I C COMPANIES I N KQRBA
COMF'ANY
AMD
INTEL
LSI LOGIC
MOTOROLA
NS
TI
TOSHIBA
ASIC START YEAR
N/A
86
87
85
86
SY
N/A
GATE ARRAY
*
w
*
*:
*
»:
PRODUCT
STD PLD CELL
1^
^
*
Mc
:*:
i«c
MCU
*
• • * • •
:*
*
itt
DESIGNERS
N/A
N/A
T
3
5
lO
N/A
LOCAL FAB
AFFIL. COMPANY
1 SOURCE : ELECTRONIC PARTS AND CONPONENTS MONTHLY
OBSTAaeS IN ASIC BUSINESS
Poor users' understanding
Low cost, small volume requirement
Continuous investment and upgrading of technology
Lack of design engineers
Lack of system design knowledge
No commercial mask house
Most market by big corporatons - 3 -
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
USER UNDERSTANDING
NOT/AT ALL <T.5%>
SOURCE: E P & C MONTHLY
ASIC SUPPLIER BY COUNTRY
EUROPE(1%)
SOURCE: E P & C MONTHLY
4 -
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
A P P L I C A T I O N F I E L D
T O Y \ A U T 0 M 0 T I V E X \ ( 8 . 7 % ) AUDIO
( 3 . 3 % ) <9.8%)
VIDEO<4.3%) MEASUREMENTS
(T. 6° OTHERS <>r3%)
I N D U S T R I A L ( 1 4 . 1 % )
SOURCE: E P & C MONTHLY
PRODUCT C L A S S I F I C A T I O N
ONE C H I P MI COM C30%)
P L D ( 3 . 6 % )
STAND C E L L ( 2 . 6 % )
SOURCE: E P & C MONTHLY
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
CUSTOMERS REdUIREMENT
LONG PRODUCT LIFECO.5%>
/ ACCURACY
(7. 5%) / "
FAST DELIVERY :8.6%)
PRODUCT' VARIETY <25.7%>
SOURCE: E P & C MONTHLY
ELECTRONICS PRODUCTION IN KOREA
7 0
6 0
5 0
4 0
3 0
l iU
l O
r»
r
^^
1
/y' yy
^y .-—^. ^y y • ^^ ,^ .—^
_ ^ — —
1 1 1
$100 MILLION • 8 3
-INDUSTRIAL
84 '85 '86 ' 87
- CONSUMER PARTS
SOURCE: KOREAN GOVERNMENT
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
KORBA•S ELECTRONICS PRODUCTION <'87>
TOTAL, lO BIULION USS
PC & -Pet-i pher-al
<i4.i%y
SOURCE; KOREAN GOVHUfflENT
INTRODUCTION OF DAEWOO'S ASIC BUSINESS
OVERVIEW
Company : Daewoo Telecom Co., Ltd.
Plant location :Guro Industrial Park, Seoul, Korea
Facilities : 2 Fabs, test, ass'y, CAD
No. of employees in semiconductor: 300
No. of designers : 35
Major product : CMOS and Bipolar ASIC - 7 -
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Parl< Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
THE REASONS DAEWOO ENTERED ASIC BUSINESS
Large internal semiconductor consumption - Over 100 Million US$ in '88 - %7o imported
Various applications within Daewoo Group - PC's - Telecommunications - Home electronics and appliances - Automobiles - Heavy industries
Heavy dependence on foreign makers - Delivery - Cost - Volume
TECHNOLOGY/PRODUCT
Present - Semicustom std. cell - Full custom CMOS - Bipolar Linear
Future - Gate Array - Silicon Compiler - BI CMOS
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
DAEWOO'S APPROACH FOR ASIC
Emphasis on internal requirements
Close cooperation with system houses
Low cost manufacturing
Increase of product variety
Keep up with advanced CAD S/W technology
DAEWOO - ZyMOS
Daewoo
Low labor cost Manufacturing facilities Financing capability
ZyMOS
ASIC business experience Manufacturing experience Highly-skilled manpower
- 9
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
COOPERATI Of* OF DAEWOO AKD ZyMOS
MFG SUPPORT
"Pi-ocJuct System
R&D Suppoi-t
SUMMARY
Korea's ASIC market is infant but growing fast
System knowledge is essential for success
Most market within big corporations
10 -
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
DataQuest I B B The Dun & Bradstreet Corporation
DEVELOPING SMALL ELECTRONICS BUSINESS IN SOUTH KOREA
Dr. Kwang 0. Park Senior Vice President
Hyundai Electronics Industries Co.
Dr. Park is Senior Vice President in charge of research and development at Hyundai Electronics Industries Co. He is actively involved in the development of high-density memory products, logic products, ASICs, product planning, and development. Prior to becoming Senior Vice President, he was Managing Director of manufacturing and supervised the construction of the 6-inch wafer fab. Previously, he worked at Intel as a Senior Staff Engineer and as Engineering Manager. While there, he worked on Intel 448 technology area of process development. Prior to working at Intel, he was a Senior Member of the Technical Staff at GTE Laboratories. Dr. Park also spent two years at National Micronetic as a Senior Process Development Engineer in the area of thin-film technology. Dr. Park received a B.S. degree from the Seoul National University and a Ph.D. from the University of Minnesota.
Dataguest Incorporated ASIAN SEMICONDUCTOR AND ELECTRONICS TECHNOLOGY CONFERENCE
November 5-8, 1988 Seoul, Korea
1290 Ridder Park Drive, San Jose, CA 95131-2398 (408) 437-8000 Telex 171973 Fax (408) 437-0292
|B282noit»<G Tftfgirae*SE|
Approaching the Asisin Age
DEVELOPING SMALL ELECTRONICS BUSINESS IN SOUTH KOREA
Dr. K.O. Park Senior Vice President
Hyundai Electronics Industries Co.
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
WE ALREADY JUMPED IN A SEMICONDUCTOR WAGON.
WHAT DO WE NEED TO DO TO DRIVE THE WAGON FAST AND WIN THE RACE?
WE NEED MORE AND MORE PASSENGERS TO JOIN US IN THE WAGON
WHY DOES KOREA NEED MORE(SMALL AND MEDIUM SIZED) SEMICONDUCTOR-RELATED BUSINESS?
- TO PROVIDE SEEDBED OF GROWTH FOR THE PERIPHERAL BUSINESS
- TO SPUR AND ATTAIN COMPETITIVE POSITION IN THE WORLD SEMICONDUCTOR RACE
- TO ACHIEVE TECHNICAL INDEPENDENCE AND EXCELLENCE THROUGH BALANCED TECHNOLOGY EXCHANGES AND TRADES
- TO EVENTUALLY FLOURISH IN THIS AGE OF TOUGH GLOBAL COMPETITIONS
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
WHAT CAN WE DO TO SPUR AND ATTAIN MORE COMPETITIVE POSITION IN THE RACE AND ACHIEVE TECHNICAL INDEPENDENCE AND EXCELLENCE?
- PUT BETTER INFRASTRUCFURES IN PLACE
- ATTRACT AND BUILD UP FAST MORE SEMICONDUCTOR RELATED BUSINESSES
- INDUCE BALANCED DEVELOPMENT IN THE ALL AREAS OF TECHNOLOGY
- ENCOURAGE AND FACILITATE INDIVIDUAL ENTREPRENEURISM, PROFIT SHARINGS, ETC.
- ENCOURAGE ACGRESIVE EXPANSION OF R4D PROGRAMS
- IMPROVE THE QUALITY OF OVERALL EDUCATIONAL PROGRAMS AND/OR PROFESSIONAL TRAINING PROGRAMS
- INCREASE SUPPORT FOR UNIVERSITY AND JOINT PRIVATE SECTOR R&D EFFORTS
WHAT KINDS OF SEMICONDUCTOR RELATED BUSINESSES ARE WE TALKING ABOUT?
- WAFER PROCESS EQUIPMENT MANUFACTURING
- MATERIALS, CHEMICALS, AND GASES SUPPLIES
- FACILITY SUPPLIES
- MASK SHOPS
- CAD/CAM
- COMPUTERS
- INDEPENDENT DESIGN CENTERS
AND MORE AND MORE SEMICONDUCTOR MANUFACTURING COMPANIES TO SUSTAIN THEM.
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
LOW COST LABOR ALONE IN MANUFACTURING IS NOT A SUFFICIENT ENOUGH FACTOR TO GIVE US A COMPETITIVE EDGE IN THE GLOBAL COMPETITIONS
BREAKDOWN OF TYPICAL WAFER FABRICATION COSTS
MATERIALS 3 0 %
FACILITY AND EQUIPMENT 4 0 % DREPREICATION
UTILITY 5%
G&A 13%
LABOR 1 2 %
10 0%
EFFECTIVE PURCHASING PRICE COMPARISON OF TYPICAL SEMICONDUCTOR EQUIPMENT
US KOREA
EQUIPMENT PRICE 100 100
COMMISSION, TRAINING 12%
INSURANCE 0.54%
AIR FREIGHT CHARGE(OVERSEA) 1%
CUSTOM DUTY G.75%
TAXES 1.21%
TOTAL 100 124
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
IT IS TIME TO INDUCE BETTER BALANCED DEVELOPMENT ACTIVITY IN ALL AREAS OF TECHNOLOGY
GRAPHIC ILLUSTRATION OF THE UNBALANCED TECHNOLOGY DEVELOPMENT ACTIVITY
R 1 0 E L A T I
V E
A R 5 B I T R A Y
S C A
CAD A S I C COMPUTER MEMORY MEMORY L O G I C M I C R O S E Q U I P M E N T D E S I G N MFG. D E S I G N D E S I G N D E S I G N
ARE THE P R E S E N T KOREAN S E M I C O N D U C T O R B U S I N E S S S U F F I C E N T L Y B I G ENOUGH TO A T T R A C T AND S U S T A I N THE P E R I P H E R A L B U S I N E S S A C T I V I T Y D O M E S T I C A L L Y ?
0 . I T NOT HAS B E E N SO F A R .
0 . BUT THE O P P O R T U N I T Y I S R I P E N I N G
- 4
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
EXAMPLE
KIND OF BUSINESS ESTIMATION OF ANNUAL REQUIRED SALES TO SUSTAIN MINIMUM BUSINESS ACTIVITY IN KOREA
0. PHOTO RESIST/CHEMICAL $ 5- lOM
0. STEPPER $80-100M
0. ETCH EQUIPMENT $30- 40M
0, MASK SHOP $10- 20M
ESTIMATION OF CAPITAL SPENDING BY THE MAJOR SEMICONDUCTOR COMPANIES IN KOREA (IN MILLION US DOLLARS)
86 87 88 89 30 CAGR
SAMSUNG 127 187 280 350 400 4 3 . 8 %
GOLDSTAR 90 133 198 300 350 65.3%
HYUNDAI 100 80 70 350 400 62.5%
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
WHY SMALL AND MEDIUM SIZED COMPANIES ARE DESIRED OVER BIG COMPANIES?
BECAUSE THEY ARE:
- MORE DYNAMIC AND COMPETITIVE
- MORE QUICKLY RESPOND TO CHANGING MARKET SITUATIONS
- MORE INNOVATIVE AND CREATIVE
- MORE SPECIALIZED AND DIVERSIFIED
- MORE ATTRACTIVE TO ENTREPRENEURS
QUESTIONS AND CONCERNS THAT NEEDS TO BE ADDRESSED TO INVESTORS FOR SMALL AND MEDIUM SIZED BUSINESS?
- IS BUSINESS OPPORTUNITY MATURE?
- IS BUSINESS CLIMATE RIGHT?
- ARE THERE GOOD GOVERNMENTAL INCENTIVES AND POLICIES IN PLACE TO ATTRACT SMALL INVESTMENTS?
- WHAT ABOUT THE RATE OF RETURN ON INVESTMENT AND PAY BACK PERIOD?
- ARE THERE ENOUGH EXPERIENCED AND SKILLED LABOR FORCES?
- CAN THE MARKET BE DEVELOPED EASELY?
- IS LOCAL FINANCING READILY AVAILABLE?-
- WILL ECONOMIC AND POLITICAL SITUATIONS BE STABLE IN A LONG RUN?
- CAN OTHER ASIAN TERRITORY BE COVERED FROM KOREA?
- IS RISK-TAKING TOO HIGH?
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
WHAT ARE THE MAJOR CONCERNS AND ISSUES OF SMALL AND MEDIUM SIZED COMPANIES CURRENTLY DOING BUSINESS IN KOREA?
- STEADY PRICE HIKES OF IMPORTED RAW MATERIALS AND COMPONENTS
- JIT DELIVERY OF RAW MATERIALS AND COMPONENTS
- COMPLEX GOVERNMENT APPROVAL PROCEDURES FOR IMPORT AND EXPORT
- DIFFICULT LOCAL BANK FINANCING
- COMPLEX AND BURDENSOME TAX SYSTEM
- SHORTAGE IN SKILLED AND EXPERIENCED MANPOWER
- DIFFUCULTY IN DEVELOPING AND PENETRATING NEW MARKET
LACK OF RESOURCES TO DEVELOP COMPETITIVE NEW TECHNOLOGY
ESCAPE FROM LABOUR INTENSIVE BUSINESS
FREQUENT DELAYED PAYMENTS FROM RECEIVABLE ACCOUNTS
LABOR UNION MOVEMENT
TRADE FRICTIONS
INTELLECTUAL PROPERTY RIGHT AND PROTECTION
LACK OF TIMELY MARKETING AND NEW TECHNOLOGY INFORMATION
MAINTAINING INDEPENDENCE FROM BIG GUYS ATTACKS
7 -
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
SURVEY OF SMALL AND MEDIUM SIZED ELECTRONIC COMPANIES ON THEIR OPERATIONAL ISSUES
SIZE
ITEM
MATERIALS -PRICE HIKE AVAILABILITY
MANPOWER SHORTAGE SHORTAGE IN PROF ENGINEER SHORTAGE IN SKILLED LABOR
MARKETING AND SALES . LACK OF MARKETING
EXPERIENCE DIFFICULTY IN PENETRATING NEW MARKET
BANK FINANCING -LACK OF COLLATERALS .LIMITED AMOUNT OF LOAN
FUNDING SHORTAGE
LACK OF TECHNICAL INFORMATION
TAX EXAMINATION
1-29
4
2
3
3
7
5
1
2
30-49
4
8
5
1
3 7
7
2
2
50-99
7
7
6
10
8 4
9
5
5
100-199
9
9
6
5
5 5
7
1
3
200-299
1
6
2
5
3 5
3
1
2
OVER 300
6
7
3
5
NO OF COMPANIES SURVEYED
31
38
25
29
31 25
32
1 1
15
Source:
SURVEY OF SMALL AND MEDIUM SIZED CMPANIES ON THE CONCERNS AND ISSUES ABOUT THE TAX SYSTEM
SIZE
ITEM
FREQUENT TAX EXAMINATIONS
UNFAIR TAX IMPOSITION
TOO MANY DIFFERENT FORMS ON TAS REPORTS
TOO FREQUENT DEMAND ON TAX REPORT
BOOK KEEPING
CLOSING FINANCIAL REPORT
OTHERS
TOTAL
1-29
6 (16 71
4 (11 1)
8 122 2)
3 (8.3)
14 (38.9!
1 (2 .8)
36 (12.6)
30-49
10 (18.9)
9 (17.0
14 (26 4
3 (5. 7
1 1 (20.8
4 (7. 5
2 (3 8
50-99
23 (29 . 5)
10 (12.8)
21 (26. 9)
9 ( 1 1 5 )
9 (11.5)
4 (5. 1)
2 (2. 6)
100-199
8 (13-8)
8 (13-8)
21 (36. 2)
6 (10.3)
6 (10.3)
8 (13.8)
1 (1 . 7)
53 I 78 58 (18. 5) (27.3) (20.3)
1 1
(NO OF
200-299
14 (40-0)
10 (28. 6)
8 (22.9)
1 (2.9)
2 (5-7)
35 (12.2)
COMPANIES AND %)
OVER 300
3 (11.5)
1 (3 8)
6 (19 . 2
13 (50. 0)
2 (7 . 7)
2 (7:7)
26 (9. 1)
NO OF COMPSNID SURVEYED
64 (22-4)
32 (11.2)
79 (27. 6)
42 (14 7)
43 (15 0)
21 (7 3)
5 (1 7)
286 (100. 0)
S o u r c e '
- 8
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
COMPOSITINAL COMPARISION OF SMALL AND MEDIUM SIZED BUSINESS
NO. OF TOTAL BUSINESS
COMPOSITION (X)
TOTAL NO OF EMPLOYEti
COMPOSITION {%)
TOTAL OUTPUT (BILLION WON)
COMPOSiViON (%)
ADDED VALUES (BILLION WON)
COMPOSITION [%)
• 70
TOTAL
25, 816
938
1, 388
588
SMB
25, 072
97,0
452
48.2
416
29.9
1B5
28.0
' 80
TOTAL
32, 560
2, 099
36, 817
12, 233
SMB
31, 466
96.6
1, 036
49.4
1 1, 763
32.0
4, 292
35. 1
' 85
TOTAL
45, 933
2, 529
78, 076
27, 496
SMB
44, 803
97, 5
1, 413
55.9
27, 777
35.6
10, 372
37.7
• ' 86
TOTAL
52. on
2, 833
93, 132
33, 746
SMB
50, 787
97.6
1, 626
57.4
35, 288
37.9
13. 185
39. 1
Source ••
SURVEY OF S&M COMPANIES ON STRATEGIC POLICY RECOMMENDATIONS BY INDUSTRY TO IMPROVE COMPETETIVENESS IN THE INTERNATIONAL TRADES
n BUS 1 MESS
JEM '
GUARANTEE OF FREE COMPETITION AMONG CORPORATES
EXPANDED BANKING AND 'FINANCING ASSISTANCE
PROMOTIONAL TRADE DIPLOMACY
COODINATION OF EXCESSIVE COMPETITION
SIMPLIFICATION OF IMPORT AND EXPORT RELATED PROCEDURES AND FINANCING
GOVERNMENTAL SUPPORT FOR R&D
GATHERING OF OVERSEA MARKETING AND TECHNICAL INFORMATION
OTHERS
TOTAL
TEXTITE
3 ( 5.0)
22 (36. 7)
1 ( 1.7)
7 (11 .7)
15 (25 0)
9 (16.0)
3 ( 5.0)
60(18- 3)
GARMENT
2 ( 8.3)
12 (50-0)
1 ( 4.2)
1 ( 4 2 )
6 (25. 0)
2 ( 8,3)
24 ( 7.3)
MACHINERY
1 ( 1.0)
30 (29 7)
3 ( 3.0)
9 ( 8.9)
6 ( 5.9)
39 (38. 6)
12(11.9)
1 ( 1 0 )
101 (30-9)
ELECTRONICS
1 ( 1.2)
34 (41 . 5)
z ( 2 4)
10 (12.2)
5 ( 6.1)
26 (31 . 7)
4 ( 4 9)
82 (25. 1)
TRANSPORTATION
r 4 ( 6.7)
21 (35.0)
1 ( 17)
4 { 6.7)
6 (10.0)
21 (35 0)
2 ( 3.3)
1 ( 1.7)
60 (18.3)
TOTAL
11 ( 3.4)
119 (36. 4)
8 ( 2.4)
31 ( 9,5)
38 (11.6)
97 (29-7)
21 ( 6.4)
2 ( 0.6)
327(100,0)
9 -
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
MAJOR PROBLEMS IN THE MARKETING AND SALES AREA BY INDUSTRY
BUSINESS
ITEM j
LACK OF EXPERIENCED MANPOWER
MAKT' ING INFORMATION
DIFF. IN NEW MARKET & SALES DEVELOPMENT
ADVERTIZEMENT AND SALES PROMOTION
PROVIDING FUNDS FOR MKT AND SALES
EXCESSIVE GOVERNMENT REGULATIONS AND TAX BURDENS
QUALITY PROBLEM
TRADE QUOTAS
OTHERS
TOTAL
TEXTILE
13 (26.5)
7 (14.3)
14 (28. 6)
i ( 2.0)
6 (12.0)
—
1 ( 2.0)
4 ( 8.2)
3 ( 6.1)
49 (16.0)
GARMENT
6 (26. 1)
4 (17.4)
3 (13.0)
1 ( 4.3)
3 (13.0)
1 ( 4.3)
-
5 (21. 7)
-
23 ( 7.5)
MACHINERY
29 (26.9)
17 (15.7)
36 (33.3)
6 ( 5.6)
13 (12.0)
4 ( 3.7)
3 ( 2.8)
-
-
108 (35.2)
ELECTRONICS
23 (29. 5)
11 (14. 1)
29 (37.2)
2 ( 2.6)
8 (10.3)
1 ( 1.3)
1 ( 1.3)
3 ( 3.8)
-
78 (25.4)
TRANSPORTATION
20 (20. 8)
7 (14.3)
13 (26.5)
1 ( 2.0)
4 (8.20)
1 ( 2.0)
2.( 4.1)
1 ( 2.0)
-
49 (16.0)
- TOTAL
91 (29. 6)
46 (15.0)
95 (30 9)
11 ( 3.6)
34 (11 . 1)
7 ( 2.3)
7 ( 2.3)
13 ( 4.2)
3 (10.0)
307 (100.0)
MAJOR CAUSES FOR INSUFFICENT MFG FACILITY AND EQUIPMENT BY INDUSTRY
BUSINESS
ITEM TEXTILE GARMENT MACHINERY ELECTRO
NICS TRANSPOR- TOTAL TATION
INSUFFICENT FUND
SHORTAGE IN SKILLED OPERATIONAL MANPOWER
LACK OF INFORMATION ABOUT MFG EQUIPMENT AND FACILITY
OTHERS
21 (58.3)
8 (22. 2)
1 ( 2.8)
6 (16. 7)
10 (66. 7)
4 (26.7)
1 ( 6.7)
65 (67.0)
16 (16.5)
13 (13.4)
3 ( 3.1)
48 (81 .4)
7 (11.9)
2 ( 3.4)
2 ( 3.4)
29 (61. 7)
8 (17.0)
5 (10 . 6)
5 (10. 6)
173 (68. 1)
43 (16. 9)
22 ( 8.7)
16 ( 6.3)
TOTAL 36 (14.2) 15 ( 5.9) 97 (23.2) 59 (38.2) 47 (18. 5) 254 (100. 0)
- 10 -
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
WHAT NEEDS TO BE DONE TO ATTRACT AND BUILD UP MORE SMALL AND MEDIUM SIEZED BUS INESS(SMB)?
- EXPAND THE BASES FOR SMB TO INCREASE COMPETITIVENESS
- SIMPLIFY THE REGISTRATION PROCEDURES FOR NEW INVESTMENTS AND BUSINESS FORMATION
- FACILITATE LOCAL BANK FINANCING PROCEDURES AND INCItEASE RESERVES FOR EXPANDED FINANCING ASSISTANCE
- SUPPORT PRIVATE SECTOR RiD AND EXPAND JOINT RiD PROJECT BETWEEN SIMILAR BUSINESS
- EXPAND EDUCATIONAL AND TRAINING PROGRAM ASSISTANCE TO PROVIDE ABUNDANT SKILLED LABOR FORCE AND IMPROVE PRODUCTIVITY
BROADEN TAX INCENTIVES FOR THE ENCOURAGEMENT OF INVESTMENTS
PROVIDE TAX INCENTIVES ON R&D
ACCELERATE AND EXPEDITE FACTORY AUTOMATION
SIMPLIFY THE TAX SYSTEM
SIMPLIFY THE CUSTOM CLEARANCE PROCEDURES AND REDUCE CUSTOM DUTIES
PROVIDE FURTHER TAX EXEMPTION OR REDUCTION ON ROYALTIES
INSTALL A-SYSTEM TO PROTECT SMALL GUYS FROM BIG ONES
- 11
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
FOREIGN INVESTMENT PROCEDURES
CUSTOMS ff OFFICE
COURT
FOREIGN INVESTOR
— i z z
< — 4 — < — 1 0 -
HOF ( B O K )
j i
3 S'
RCPBC
R E L E V A N T M I N I S T R I E S
1. APPLICATION FOR AUTHORIZATION 6.
2. REVIEW OF APPLICATION 7.
3. DELIBERATION AND APPROVAL BY THE F rPR C
4. AUTHORIZATION
5. APPLICATION FOR REVIEW AND CONFIRMATION OF SPECIFICATION OF 10. CAPITAL GOODS TO BE IMPORTED
IMPORT DECLARATION
APPLICATION FOR EXEMPTION OR REDUCTON OF CUSTOMS DUTY, ETC.
8 REPORT OF FOREIGN CAPITAL INDUCEMENT
9. INCORPORATION
REGISTRATION OF FORE IGN-INVESTED ENTERPRISE
*NOTE: PROCEDURES 2 AND 3 ARE OMITTED IN THE CASE OF PROJECTS ELIGIBLE FOR AUTOMATIC APPROVAL.
FOREIGN INVESTMENT CONDITIONS
PROJECTS NECESSARY CONDITIONS
1) PROJECTS ACCOMPANIED BY ADVANCED TECHNOLOGY
2) PROJECTS INVESTED IN BY NON-RESIDENT KOREAN NATIONALS
3) PROJECTS LOCATED IN FREE EXPORT ZONES
i) OTHER PROJECTS
THE PROJECT SHOULD BE ACCOMPANIED BY THE TECHNOLOGY THAT MEETS ALL THE FOLLOWING CONDITIONS
. DOMESTIC SELF-DEVELOPMENT IS CONSIDERED DIFFICULT
. USED IN TECHNOLOGY INTENSIVE OR HIGHTECH INDUSTRIES ANNOUNCED BY MOF
, RECOGNIZED AS HAVING REMARKABLE ECONOMIC OR TECHNOLOGICAL BENEFIT BY THE MINISTER OF FINANCE AFTER CONSULTING WITH RELEVANT MINISTERS AND THE MINISTER OF SCIENCE AND TECHNOLOGY
ONLY IN MANUFACTURING INDUSTRIES
THE PROJECT SHOULD BE SMALL AND MEDIUM SIZED AND SHOULD FALL IN THE LIST OF 'INDUSTRIES FOR PREFERRED FOSTERING AS A SMALL AND MEDIUM-LIZED ENTERPRISE WITH TAX EXEMPTABLE STATUS"
ITS FOREIGN INVESTMENT RATIO SHOULD BE LESS THAN 50%
(MINISTRY OF FINANCE NOTIFICATION, NO- 87-10, 87.7.1)
- 12 -
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
DataQuest n n a company of MiMM TheDun&BradstreetCorporatK
A NEW PLAYER IN ASIAN SEMICX3NDUCT0R GAME - INDIA
Rahul Sud Vice President of Marketing Microchip Technology inc.
Mr. Sud is Vice President of Marketing at Microchip Technology Incorporated, a $100M manufacturer of VLSI integrated circuits. Mr. Sud founded Lattice Semiconductor Corporation in 1983 and served as President and Chief Executive Officer for four years. Lattk^'s Generic Array Logic (GAL I'M) family of 0.9 Micron £2 CMOS "^^ PLO's have set a new industry standard in the $750M PLO marketplace. During his 15 years In microelectronics, Mr. Sud has held management positions encompas8ir)g marketing, development, manufacturing and corporate and general management, having worked at Intel, Inmos, SIgnetlcs and IHarris Semiconductor. Mr. Sud was Electronics Man of the Year, Semiconductor Memories in 1980 and received the TOBIE award In London for the development of Inmos' pioneering family of IMS 1400 fast static RAMS whidi achieved $100 million in sales in 1984.
Mr. Sud graduated as top ranked graduate from St. Stephens College, University of Delhi. He holds two masters degrees, one in Solid State Physics from the Plorkia Institute of Technology and one in Electrical Engineering from the University of California, Berkeley. He achieved Ph.D candidacy at Stanford University before Joining the industry.
Dataquest Incorporated ASIAN SB ICONDUCTOR AND
ELECTRONlCSTBCH<XOGYCO(^B«^CE November 6-8, 1988
Seoul, Korea
1290 Bidder Park Drive, San Jose, CA 95131-2398 (408) 437-8000 Telex 171973 Fax (408) 437-0292
iBaagioi2.iMG targi/ee.ASE|
Approaching the Asian Age
A NEW PLAYER IN ASIAN SEMICONDUCTOR GAME -- INDIA
Rahul Sud Vice President, Marketing Microchip Technology Inc.
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
DISINCENTIVES TO BUSINESS
• INDIAN BUREAUCRACY: PERVASIVE, COMPARTMENTALIZED, OVERREQULATORY AND LARGELY INEFFICIENT
PHYSICAL INFRASTRUCTURE:
POWER, TRANSPORTATION, AND COMMUNICATIONS STILL NOT MATURE
MiKfsctilp
GDP GROWTH RATE COMPARISON (PERCENT)
COUNTRY
INDIA
KOREA
TAIWAN
CHINA
JAPAN
UNITED KINGDOM
UNITED STATES
SOURCE. SRI INTERNATIONAL
1985 4.2 5.2 4.1
12.5 4.5 3.7 3.0
1986 4.5
10.5 9.8 7.0 2.3 2.4 2.7
1987 4.5 6.7
6.5-7.5 5.5-6.5 3.5-4.5
3.0 2.7
Microchip
- 1 -
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
INDIA S MIDDLE CLASS THE DRIVING FORCE
• 12.5% OF POPULATION: - 100 MILLION PEOPLE
• GREATER THAN THE ENTIRE POPULATION OF GREAT BRITAIN OR FRANCE
• ENTREPRENEURIAL
INDIAN EDUCATIONAL INSTITUTIONS
TYPE NUMBER
COLLEGE/UNIVERSITIES 1 2 5
SPECIALIZED INSTITUTES 15
INDIAN INSTITUTES OF TECHNOLOGY 5
ENGINEERING COLLEGES 1 6 4
POLYTECHNICS 3 3 1
REGIONAL ENGINEERING COLLEGES 5
TOTAL 6 4 5
Microchip
2 -
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
MAJOR SCIENTIFIC AGENCIES IN INDIA AGENCY EXPENPLTUR^
(MILLIONS OF Rs)
DEPARTMENT OF ATOMIC ENERGY 1 7 8 0 . 6 6
DEPARTMENT OF SPACE 1 4 5 0 . 2 8
DEPARTMENT OF ELECTRONICS 6 0 . 6 0
DEPARTMENT OF SCIENCE & TECHNOLOGY 8 5 0 . 1 8
DEPARTMENT OF OCEAN DEVELOPMENT 2 2 0 . 7 1
DEPARTMENT OF ENVIRONMENT 1 8 0 . 9 3
DEPARTMENT OF NON-CONVENTIONAL ENERGY SOURCES 1 4 0 . 4 5
INDIAN COUNCIL OF AGRICULTURAL RESEARCH 1 3 1 0 . 0 0
DEFENCE RESEARCH AND DEVELOPMENT ORGANIZATION 2 0 4 0 . 0 0
INDIAN COUNCIL OF MEDICAL RESEARCH 1 9 0 . 0 0
COUNCIL OF SCIENTIFIC AND INDUSTRIAL RESEARCH 1 2 1 0 . 0 0
NATIONAL BIOTECHNOLOGY BOARD
NATIONAL SCIENCE AND TECHNOLOGY ENTREPRENEURSHIP
DEVELOPMENT BOARD
INDIA HAS OVER 130 SPECIALIZED LABORATORIES AND INSTITUTIONS
INDIA
' WORLD'S THIRD LARGEST POOL OF SCIENTIFIC AND
TECHNOLOGICAL MANPOWER
WORLD'S LOWEST COST ADVANCED
TECHNOLOGICAL TALENT
MisrDChIO
- 3 -
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
WAGE RATE COMPARISON FOR SKILLED ELECTRONICS
EQUIPMENT OPERATORS
INDIA $0.60/Hr.
SOUTH KOREA $2.60/Hr.
TAIWAN $2.00/Hr.
THAILAND $1.15/Hr.
M»«isch(p
LEVERAGING INDIA'S NATIONAL ASSET
I SKILLED TECHNOLOGICAL AND SCIENTIFIC MANPOWER
• VLSI DESIGN
• SOFTWARE DESIGN
• SYSTEMS DESIGN
• OTHER KNOWLEDGE INTENSIVE PRODUCTS
Microchip
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
GROSS SAVINGS AS A PROPORTION OF GDP
1965 - 1983 (PERCENT)
1 9 6 5 - 7 0 1 9 7 0 - 7 5 1 9 8 0 - 8 3
HOUSEHOLDS 11.6 13 .5 15 .7
PUBLIC SECTOR 1.4
PRIVATE CORPORATE 2.6
1.8
3 .2
1.9
5 .2
TOTAL DOMESTIC SAVINGS
15.6 18 .4 22.6
Ml CIS chip
EXPANSION OF COMMERCIAL BANKING
60.000 (0 111
5 50.000 at <
g 40,000
< 30 000 O 20.000 d z
10,000
1,200
•J 1 ,000 (E
0>u. t o aoo >z Si 2 600
''i ID S 400 200
1969 1975 1962 19B7 1969 1975 1982 19B7
SOURCE: RESERVE BANK OF INDIA Microchip
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
SAVINGS RATES
INDIA 2 3 %
JAPAN 177.
SWITZERLAND 17%
BANK DEPOSITS HAVE GROWN 22 FOLD SINCE 1970 TO OVER RS 1 TRILLION IN 1987
Mice chip
INDIAN STOCK MARKET
1982 1986 1990 NUMBER OF ^^^^ ^^^^ ^^^^ INVESTORS 2 M 7 M 15 M (MILLIONS)
VALUE OF CAPITAL ISSUES APPROVED INCREASED 84% IN 1986, TOTALLING RS 37 MILLION
Microchip
- 6 -
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
INDIA • WORLD'S SECOND LARGEST POPULATION
8 0 0 MILLION
* WORLD'S LARGEST NUMBER OF COLLEGE STUDENTS
• WORLD'S THIRD LARGEST POOL OF SCIENTIFIC & ENGINEERING MANPOWER
• WORLD'S 10th LARGEST INDUSTRIALIZED NATION
* WORLD'S HIGHEST SAVINGS RATE - 23%
MiCfBCtMp
INDIA'S ELECTRONICS PRODUCTION ($ MILLIONS)
4,000
3,000
2,000
1,000
OH
SOURCE: DATAQUEST INC.
1984 1985 1986 1987
- 7
Microchip
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
INDIA'S COMPONENT PRODUCTION ($ MILLIONS)
500
400
300
200
100
1984 1985 1986 1987 Mkcroctiip SOLRCE DATAQUEST INC
INDIAN SEMICONDUCTOR DEMAND ($ MILLIONS)
1.300
1988 1989 1990 1991 1992 1993 Microchip
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
INDIAN SEMICONDUCTOR INDUSTRY COMMERCIAL
• BHARAT ELECTRONICS LTD.
• SEMICONDUCTORS LTD.
• CONTINENTAL DEVICES INDIA LTD.
• SEMICONDUCTOR COMPLEX LTD.
• INDIAN TELEPHONE INDUSTRIES
RESEARCH
• TATA INSTITUTE OF FUNDAMENTAL RESEARCH • CENTRAL ELECTRONICS ENGINEERING AND
RESEARCH INSTITUTE MiCfb^hip
SEMICONDUCTOR COMPLEX LIMITED
A $ 5 0 MILLION NATIONAL MICROFABRICATION CENTER
• 1.5 MICRON CMOS
• CAD
• ASSEMBLY/TEST
• ASIC
Mtcr»«hip
- 9
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
INDIAN GOVERNMENT COMMITMENT TO VLSI
• 11 NEW NATIONAL DESIGN CENTERS
• LIBERALIZED POLICY ON IMPORT OF HARDWARE AND SOFTWARE
• NEW WAFER FAB PLANNED BY INDIAN TELEPHONE INDUSTRIES
Microchip
SUCCESSFUL FOREIGN DESIGN/SOFTWARE
ENTERPRISES IN INDIA
• TEXAS INSTRUMENTS
• TATA - BURROUGHS
• OTHER
Microchip
- 10
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
FOREIGN COMPANIES IN INDIA
• AT&T PHILLIPS TELECOM • N.V. PHILLIPS
• Oil - HONEYWELL BULL • SIEMENS
• CONTROL DATA CORP. • OKI ELECTRIC INDUSTRY
• ELXSI & TRILOGY SYSTEMS • TANDON CORP.
• ICL • MONSANTO
• NORSK DATA • RANK XEROX LTD.
Microchip
GOVERNMENT INCENTIVES INDIA'S EXPORT PROCESSING
FREE TRADE ZONES
• UP TO 100% FOREIGN OWNERSHIP
• EXEMPTION FROM IMPORT DUTIES ON CAPITAL EQUIPMENT AND RAW MATERIALS
• LOW INTEREST FINANCING
• 5 YEAR TAX HOLIDAY
• LOW COST LAND
• MAY SELL 25% OF OUTPUT TO DOMESTIC MARKET
Microchip
- 11
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
INDIA'S UNIQUE POSITION
• POSITIONED TO CATAPULT INTO ONE OF THE PREMIER CENTERS OF INDUSTRIAL R&D
• IDEAL FOR PRODUCTION OF KNOWLEDGE INTENSIVE PRODUCTS
^ AiCCOChip
INDIA INVITES m
TO FORM A PA R T N E R S H I P
- 12 -
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
PARTNERSHIP MODEL
INDIA VLSI DESIGN
SOFTWARE TOOL DESIGN
HARDWARE TOOL DESIGN
DEBUG
ASSEMBLY
• TEST
FOREIGN PARTNER STRATEGIC MARKETING
• APPLICATIONS
WAFER FABRICATION
• WORLD-WIDE SALES AND DISTRIBUTION
McrecMp
INDIAS COMPETITIVE ADVANTAGE
• ONE OF THE MOST EXTENSIVE COLLEGE, UNIVERSITY AND GOVERNMENT LABORATORY NETWORKS
* ENORMOUS POOL OF TECHNICAL AND MANAGERIAL PERSONNEL - WORLD'S 3rd LARGEST
• ABUNDANT CAPITAL AVAILABILITY DUE TO HIGH SAVINGS RATES
• A LARGE AND GROWING INTERNAL MARKET
Micfsctilp
- 13
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Teiex 171973 / Fax (408) 437-0292
INDIA A PASSAGE TO
SEMICONDUCTORS
Microchip
- 14 -
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
DataQuest a company of The Dun & Bradstreet Corporation
' n V B a company of
ABOLT THE AUTHOR
Xu Juyan is the chief engineer of Wuxi Microelectronics Corporation, China. Since 1957/ he has been in the semiconductors area,mainly specializing in R&D worJc of microelectronics process technology,devices and circuits fabrication, circuit design, CAD and semiconductor equipment. In addition to teclinclogical management, he has been studying development strategies of the electronics industry in recent years. At present, besides the professor-grade senior engineer at WMC, he is holding concurrently the following key posts, a professor both, at the Microelectronics Institute of Southeast University and the Economics AdEiiiistration Department of Zhejiang University, a member of the Aca-J Hiic CoiiJLlttee, Education Ccmmlttee and Semiconductor ICs Committee cf CIE, a member cf China's Electronics Industry Science and Teclmology Ccmmi Itee, ajid an examiner of the Xational Foundation of Natural Science.
1290 Bidder Park Drive, San Jose, CA 95131-2398 (408) 437-8000 Telex 171973 Fax (408) 437-0292
iBg8gioi3-WG ^ommjj^
Approaching the Asian Age
THE RISE OF CHINA'S SEMICONDUCTOR INDUSTRY
Xu Juyan Chief Engineer
Wuxi Microelectronics Complex
1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
THL RISE OF CHINA'S SLMICONDIITCR ::;:iSTRY
XL JQAN
ChLef Eiiyiuccr Wuxi MltroeLuc Ironies Corporal ion, China
0\ERVIEW
China's research and developsient in sesiicoiniaclor can be traced back to as early as 1950s.
China developed its first germaniuo transistor in 1957 and was able to produce jeven t>pes of such devices with aji oimual output of 60^000 pieces in 1958. In the early 1960s, Hebei Senlconductor Institute developed the planar technology , with which il Jeveloped both the planar small signal transistor and the high- frequency high power transistor. Thereafter, it began to manufacture .silicon scuiconduclor devices on 1.5 inches imported wafer fabrication equipnent. In 1965, Hebei Institute began to manufacture its first series of integrated circuits (DTL), thus bringing China's semiconductor industry into a new era. One year after, China developed two ki;id:> of linear ICJ (amplifiers).About the same time, both microwave and optoelectronic devices developed rapidl) in China.The late 196G^ witnessed emergence of Sichuan Solid State Circuits Research Instilulc and Xanjing Solid State Devices Research Institute, with the latter specializing iji research and development of microwave and optoelectronics technology. (Table 1 lists a chronology of events in Ci.iua's semiconductor ijiduslr). )
Thereafter, the turmoil of the notorious grt-al cultural revolu-liuji" begaji to affect the development of China's semiconductor industry. In 1970, about 15U millions of diocreU devices and 4.2 millions of ICs were produced in China. Since lliti, .China's semiconductor production was on decline >ear after ;,ear ajilit 1974 75, which ^d^ the annual output resuming to the level cf I'.TO (see Tabic 2).
The ;,ear of l'J77, onlj ojie >eaj- after 1976 i^h tlie dcwiifall cf the ' yaiiy cf four" , e.vpiM iejiccd a jliarp ijicrc'a--i: iji ICs prcduclioii with d total outpul fi\e times more than tliat cl l'j75. This ;,harp
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
rebound, liuwevcr, did not lesiaiii iojif er due to the Lajic guideline influejiLC'd l> the "g«ing of four' . Sc soon after the tonspirationai clique of the "gang of four" was cracked down, Chind':J semiconductor industry actually entered a ten-year period (1976-1986) of recovery and readjustment. The readjustment included rearrangement of the ralio between mi li lar.) and civic, capi tal and consumer applications, belter combination of central plajuiing and marketing control on the macroetonofflic management and a new development strategy (emphasis en applied purposes rather than blind pursuit of the world most advanced leve>l). Therefore, the manufacture of semiconductor devices developed moderatel> in China between 1976 and 1986.
Last >car, China's semi(.onduttor industry began to show its prowess after a ten-year readjustment and jumped out the moderate growth. The ICs output of 1987 increased 50' against that of 1986 in China. Mure significiintly, the Chinese goverju&enl has laid out a new guideline for its electronics industry, i.e., to develop a new powerful electronics industry with microelectronics technology as its cornerstone and both computers and communications as its frame to closely serve the national economy, speed up the progam of the 'four modernizations' , and to raise the living standard of the whole society Under such guideline, China^s electronics industry has been playing a more important role in the national economy and its oupput value has grown steadily in the past few years (See Table 3). The use of semiconductor products has escalated rapidly as a result of sharp growth in the consumer industry (see the communications and broadcasting column of Table 4). Such fast growth in return has added an impetus to the development of semiconductor industry. Therefore, it is widely acknowledged liidt the global semiconduL tor field will oce a tompeti-tive player from China.
TIE I.\IJI:^TRV STRUCTL-RE A.\X :CALE
Tlierc aru ..erne hujidrL-d:> of jcaiitonduL Icr manufaL tui iii!; <uid researLJi brijdjiizal iuji5 in CJiina. The majority of them is under llic adoiijilu-lr»tlioji of iJie Ministr^? of Mai.liiin.-Luj idiny ojid EiuciiujULj Inuuotr^ ami iJic reot is respet 1 i•>el;> ujidej IJiu Aiademia S in i i a , liie Mijii^lr,, cf GpaLL' ojiu A.iat ioj i Ijidu.jlr^. lln' Minijlr, , of Poslai ajid TL'ULUUJ-
iLuiiii al iunj ojid the I ' la le LuuLaticii CoMiij^iuji. The.iL' manufat l u j c i -ojid rehearL.ii i j i ^ t i l u l ro are j c a t t i r u d a l l c e r the tuaji lry(icL TaLlu Z). Lul iLali^: iji tiiu pJu.ijtLt'.j ci J iojiyou, Liauiiijiy, Shojidcng .uid
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
Sichuan and cities of Shanghai, Beijing and Tienjin. According to the statistics : ]iown in Table 6.iiore than 20(J> 000 people were engaged in the manufacture and research of Ciiina's semiconductor industry in l'jo6 ,wilh the ttiaJLrit> in the line of distrete device^ and ever 40/OOU in ICs, amung whom more than 5,000 were rcseach and technical people. Most of these tcdmical people act are working in the Acadeoiia Sinica ajid majur research organization^ in industrial fields. They account for 40- of the total enplo^nenl there.
Most Chinese semiconductor manufacturers are under the Ministry of Machine-building and Electronics Industry. Their output, output value and productivity in the past three years are presented in Table 7. A principal portion of such devices are coBflercially produced by only a few larger corporations.Up to now, the value of Chinese semiconductor devices consitutes a rather small portion of that of the electonics industry, far from satisfying the needs of the country's industrialization.
Comparatively speaking, Chilians research and development in semiconductor technology advances more rapidly than its manufacture.A variety of high density 64k-bit DRAM and 16-bit microprocessors have been developed on the 3 inches equipment.Nearly one thousand of new types of products developed in 1985 by organizations under the Ministry of Electronics Industry are shown in Table 8. A part of them developed by research institutes during the sixth five-year period (1981-1985) are listed in Table 9. Table 10 is a list of some major seciconductor research insitilutes in China.
At present , the manufacture technology in China is 3-5 micron and the research and development is 1-2 micron . The products m^de in China cover all kinds of silicon and compound semiconductor devices, mainly for consumer applications with 3 4 inches wafers.
China^s semiconductor industry boasts a fair comprehensive systeu comprising design,, wafer fabrication, mask making, assembly & packaging. and testing with wafer fabrication in dominance over the other four.
IXTERNATICNAL COOPERATION
Over tlie [d^[ several 'jeaio, Ciiijia'i ..eiuiuLnJuLtcr industry has
. 3 .
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive, San Jose CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
been under remoulding in light of the opening pollLy. The resoulding has been carried out in the forms cf license agreement, compensatioji trade, processing with supplied materials and joint ventures. Onl> within the past few years have IS$100 million and 15$ 150 million worth equipment and technology been imported respectively regarding discrete devices and ICs.Such imported projects are shown in Table II. Table 12 lists a number of major imported projects which were completed and went into commercial production in 1985.
Having gained more experiences, China's semiconductor industry Is cooperating with foreign companies in more comprehensive ways. It Is introducing a complete package of technolog> from them and attracting them to establish partial lyowned and wiiol ly-owned plants in China.
Meanwhile, Chine:>c semiconductor scholars have established wide connections with their counterparts all over the world, often comparing notes with them on many subjects.
Besides above International exchange, China has also imported semiconductor devices extensively in the past years. The imported ICs are three times as many as domestically produced devices. However, the exports of the same period are only a few percentage of the total output value.
DEVELOPMENT AND OUTLOOK
Although the semiconductor market in China is still in its infancy compared with that of U.S.,Japan or Europe, i t is expected to grow rapidly in the near future.
During the period of the sixth five-years (1981-1985), the output value of China^s semiconductor devices indu:>lr> was at a compound annual growth rate of <!6-33 percent. If at JMLII a rate, it will increase three to four lime^ L^ Ihe end of 1990. CiiLjele uu,ices will increase to RMB¥ 10 billion and ICs lo R:VIB¥2-3 billion mark. * roi,iti\el> affected ii the ten-year readjustment, the belter guideline and the opening poliLy, the ailuat future growth rale of Chijia'i jemiconduclor devJLes industry could Lu yrealcr tha/i iJiat cf iJic sixth fi\e->far period. It ii, however,;. ti 11 uncerliiin if the ouppl.f cf such devitej LOJI
. 4 .
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
L e d the desaiid of a one-biUion-populalion uarktit. Betvieen I H l and 19i>5, China inpLrlL-d ever 50 production lines for major parU uf LOIOI
TV ot;L;. sith a Lajjatily of produLing 8-9 mi I iioji :>eli per year. Nine of ten plannfcr; and experts predicted then that it was more llian enuii^h iQ 3ali;>fy the Chinese market. It turned out this is much iinder-tstindUd. ALLordino lo the publiL statistics, presently about IDUH faiLilies are sJiaring <i VCR, 1000 people are shiiittig ei^hl telephone:* ^id 2Gi,000 people are sharing a car in China. When soneday the Chinese sarkel yrows to be even half in size of the I.S, or Japanest narket, just guess hov nany seuitonduclor devices will be needed fox all electronics systems.
The Morld history shows thai the centre of huuan civilization has been moving from one place to another as time goes b). The Chinese civilization has been completing a journey axound the earth. It started from the Chinese ancient capital Xi'an seven centuries ago, moved to Rome Ihrout^h the Silk Road' and was brough to the easten coast of North America by the eighteen century Industrial Revolution following the Renaissance and the Bourgeois Revolution. In 1950s, one of the transistor inventors Dr. Shockley spread the seed of silicon civilization, from east to west, to the silicon valley. In late 1970s, the seed was brought across the Pacific Ocean to Japan, In i980s,it crossed the Sea of Japan and came to South Korea. This civilization, touring along thirty-five degrees tatitudeCsee figure 1), is expected to return to China. If the return comes true, it must a sublimation, bringing another round of prosperity to the human beings. At that time, China will possibly rise to be the largest market of manufacturing and consuming semiconductor devices in the world.
-l'SSl.00=RMB"i3.7 2
icon Dww D^pfsquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
Tabic 1 A Chronoloy^ cf Events jji China'a JOILILUJIJUL lor ludu^Li.,
'iTAR EVENTS .
1956 Semicouduutor technology, was listed as one of tlit priorities in " Twelve-year Science H'- Technology DevelopEent Program " prepared by the late Preiier
Zhou Enlei with other planners
1957 The firol gerBianimn trajisistor was developed in China
i960 0 EiiicryuiiLe of the semiconductor research institute under the Acadenia Sinica
0 Encrgence of Kebel Sealconductor Re;£earch Institute under the Ministry of Industries
1963 Emergence of No.Four Machine-building Mlnistry(late called the Ministry of Electronics Industry)
1965 0 Hebel liutitute developed and began to manufacture its first series of ICs(DTL)
0 The output of senlconductor devices and transistor radios exceeded that of electron lubes and electron tubes radios
1966 The first linear IC was developed and development of MOS IC started in China
1968 Preparations were started to establish Sichun Solid State Circuits Research Institute
1974 The Stale Planning Commission held the national ke^-task conference on LSI and its basic materials
1976 Ik DRA.M was developed at Beijing Iniversity
1978 4k DRA!<1 was developed at Ihe semitonductor research inilitute under the Academia Siniia aiid Sithuji Solid Stale LL'WLei Research Inilltutc respectively
;!J80 16k DRA!'! wa:. developed at Sichun Solid Stale Deviee. Re^earth hull lute and the ^euiitonduclor resear»h instliufe under the Academia Sinica respectively
. 6 .
nnn o , j ^ Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
\')'62 c A leading group and ilj offict were establibcd under the Stale Council lo enfortu the developuienl of L O H -pulCTb jjid ICs industry in Chijia ilale called China'^ ElcLlronicj Indu^tr;, Vi tal ligation Leading Group)
0 The third national key-tiuk LOJiferente on LSI was
held and it decided to build U c uitroetei tronic:> ba:>e;> in China, with one in the :iuulheTn part and the olJiei in the- northern part of the cowitry
i9i;3 The State Planning CoBuui:.sion approved to establish Wu:\i LSI ResearchJ^Production Corporalica under the Ministry of Electronic:i Industry (late called Wuxi Microelectronics Corporation)
1985 0 U k SRAM was developed at Qinghua University 0 64k DRA!»1 wa:. developed at Wuxi Microelectronics Corp.
. 7 . Dataquest Incorporated, a connpany of The Dun & Bradstreet Corporation
1290 Ridder Park Drive, San Jose CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
rv) CD
o 3) ai a.
-a ^ a 9E < •=
(/> — 01 D D O
<^9 o -o fg R ' 0> O CO > Q . CD 0)
0)
Ol
£58
-i 00^ , ^ o
°5 3 ^ feo •^ c c o ^ O po o O DD ~- 3
s*8-£5-
3o CD O CO-D ^ O -nS go
OD
T a b l e 2 Ol'TrUT OF SEMICONDUCTOR DEVICES MADE IX CHINA ( I n ThousaJid:>)
YEAR DISCRETE DEVICE:
i*iZZ 19(»0 1962 1H4 I'Jbb
ins I'JTO l'J72
59.a 3,086.0
954.6 i, 554. b
27.G49.5 J7,416.4 150.523.1 191.l>6'J.i{
- ^.. . ,.
ICs
1.7 1 0. b
4.225 2(38.2 - -"
- .
YEAR
1974 1976 1973 1980 1982 1984 1980
---- —
DISCRETE DEVICE:
223. 353. 411. 677. 633.
346. 034. 819. 061. 567.
1.053,653, 989.903
IC:
•I I I ^9 0
21.5 oU.4 16,8 13.5 39.2 45.7
o r o CO r\j
^-' ; — > o
i=^ i-"*" •—' cx: —] (-> - t : cT : ^ ; — > ca _ ] >*. -< ^ • ^ taM^
cc: m f— LJ t o 1—< L J > r C3 O i ' . on •—1 H« CJ U j ~-l - J - < t i j >r:
o t o ^ -' ^--T: - t : ^ ' >*. •" 5H
H -U .
o x: I M ^
t u t a ^ -•c IJ 1 — — J i < - t : u j ; ^ UJ Oi£ UJ C^
r^
» —"
1 , - ^ i
1 -i^ N - '
! t ->: u> ( - }
a£ > UJ : O^
i
1
1
1
1 1 1 1
1 - ^
' ca 1
1 ' ^
'~'
h -;_;
I C ^ . t -: L J : C3
1 •
i S^ i ^
e» CNJ
i
i
1
1 1
1 1
1
' .^ i < ^
^-^ •-
1
1 '=^ 1 to
• * v a 4
cy
C M
C O
r-^
• • ^
•••
r'» eo &» «•-«
- - u->
«v» r^
ir> * * • f k A
—^ CO CM esj
^1" ir» ce CO .—« erv « ^ *-
i
r o C O
i
1
1
; 1 1
1 1 1 1 1
1 1 1
evj 1 <=> 1
1 O . CO 1
i 1 1 1
<« ! C O
^ • • ^ 1
sS
. 9 .
.onn n ..^ Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
ro (D o 31 Q. CL (D -o ^ o
-"> s W H D) 3 3 O t - ° o -a fg 5 " OJ O <D > Q. ID QJ 01
CO^ Q] CO 00,;
6 0 00 ^ O po o O CD
-~ s s:&
SB.
3o <D O ^ - 1 COTJ __ O
-na P. n
Table 4 SALES OF ELECTRONICS PRODUCTS IN DIFFERENT AREAS ( I N BILLIONS RMUY)
YEAR
im
1983
1984
1985
1986
-
RADARS
4.1
5.5
6.3
10 .3
12.3 -
COMA'I CAT IONS & BROADCASTING
3 7 . 5
5 3 . 1
80.Q
132.5
134.3 — • ' • - -
COMPUTERS
4.3
6.5
1 4 . 6
1L4
14.4 -.. .- . _ — ..--
- - —
COMPONENTS
3 5 . 5
4 5 . 9
6 0 . 2
7 8 . 9
8 0 . 3
TOTAL
8 1 . 4
l U . U
1 6 1 . 1
2 3 3 . 1
2 4 1 . 2
o 00
o ro CD
C-J
A
CO UJ
UJ a
o t— LJ ;^ a >r; o (-9
VI
'-' V w< s --> «4
•mm
S
1
{ ;
: 1
' CO i T^
1 *~^ 1
i
,
U*^ U d
1 e^a
1 1
L=J 0 1
O
- t : (_}
o
i=i
•^ ' ^ O) • ^
» V i
o ;^ 2
• «4
.a ( - }
1^ 4 )
« h q
O >'.
1 ' - ' 1 MM 1 k " 1 Ul 1 ^ 1 ^ *^
a i ° ' to t ^
' <a e
1 .-. , •« 1 (-9
; C V i
6i
« 1 '/5 1 Cd
UJ
; 1 1 1
1
«< •/» 0) 3
.^ • J
v« 3 ,
>r. ! •»
« A O)
,« • ^
^ 3 -O
OT i
. 11 .
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive, San Jose CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
v . »
ro % ^
>'.
>-
-C i—1 C^ '
• f—
n c^
s U. f — *
• i 5
• ~ =5 r o
u-> c -: 3
. -.s CNJ
—'
t ' i
C 3
C 3 H^ <_}
;-!
C3
en C.T
- t :
>; o _ j &: u j _ j H-C3 ^-
H-
v ^
(JU
i i C-t
o UJ
t >f
UJ
•n -a
'/I •J
L> OJ
UJ
Q
C » CO
c -rvj
r j rv i
CNJ
A
O —
_) 1
C'J
- 3
•1 O ' / I
t - . C
o I o —
-a . 1 B V4 )i^ - - ^
I -T .1 .I 3
^ -s -3 ^ - i t . . • .-t . _ i o • s=: ^ s ; • 7=: -1 • > l ; „ SJ O ! 41 —' • . j ^ ^ j = : _<i;
fS - 1
cd
3J
-a
u
u e
t^ «i
4)
O V
o.
Ol
• 12 .
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
UJ (-J
UJ £ 3
oc o t— U) ; - > o u> ^. UJ C/i
u. o
>-»-fc-i^
i » »>>^ i-> u :^ a o Qi: b .
o ^
t^ S - J • <
;»
^-L? Q-.
Ul o
* H-=3 o« 1— : J
o
c -
' 1 s 9 ' e o 1 «r> 1 ^"^
1
1 '''» > e e I » «
1 ""
1 1 1
t ' ' ' \ e o
1 2-1 1
\
\ i 1 1
\. 1
]
1 ( 1 1 1 ^ ^ • 1 1 * ^ 1
e o > 1 * * i 1 i
1 0 9 1 1 . I 1 • ^ 1
1 o 1 1 2 1 1 1 1 ' " I 1 . \ 1 *** 1 ' Irt 1 ' ^ t
; C3 1 1 a 1
[ :§. " ^
I —J t o : . ^ U ) 1 W O
w U J t h - i •—• ' L-) d .
CL^
*— :^ o
t -•
\e> ^
v r f
• e> u>
f»»
• »* o
u » i ^
,
1 *•* 1 • 1 '^ 1 e o 1 C9 1 est
1 *^ 1 • 1 t— 1 \n 1 * ^ 1 C<4
1 e o 1 • 1 >^ 1 u> 1 m^ \ CM
1 C3 i -ea
I'i 1 _i 1 —J t o 1 BE 1 w ; H-1 S 1 0^ ' t--J ^
o
t 1 1 1
1
1
1 1 1
I 1 t
1 1 1 1 1 1 1
1 1
^\ >«*
g oi,
9^
. eo e o <~»
f *
• w^
t » "«*
^ 9
• • M «
?<«>
-*
CJ h M H *
' «Mri
' •"* 1 '•*
» 1 C ^
1 * * 1 tA 1 e o 1 1 2 1 CM I ers
• 1 1 "
^|.
1 ^ 1 ca
> -1 -^ v 4
1 -u
1 1 1 1
i
f^
% m \ : 3 w*
^ o > •
c^ Ck^ t . ^
V 0 m^
t*>
» «> H ^
• e v j C9 tr>
« r-
r-esj e o
» u> ««irf
<_> k - i ^
1 1
!
1
1 1 1 1 1
1 1 . 1
</> a» o "m
> «»
ca «» V M o vi
••«ri
ca II
• ca
tu - J ea -C
. 13 .
'^^'^^^®^' Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
I>0 (O
o 3 ) CL Q. CD
T J
5; D TT 03
< t^
-^^ w _ D) D =J O
C-R o -o
s ° - D) O CD > Q. CD 0)
TABLE 8 § 0 NEW PRODl'CTS DEVTiLOPED BY ORGANIZATIONS INDER M.E. I I \ Si 00,5
i?i _ DESIGN VERIFICATION 347 -sg" -f
ii . PRODUCTION FINALS 12 O 00
o ^ O CD I TECILMCAl VERIFICATION 92
s §0 PROTOTYPES 369
o
I TOTAL 820
t | CO O ^ ~» G 3 - 0 ^ O
«>. O 00
O l \ ) CD
rv) CD o 33
a Q. <i)
"0
^ a : ^ Q)
? I < £ (D to - OJ
CO _ a> D 3 O
<-^ S "o S o CD ^ " Si O CD > a. g'-" CO o
c o ^ CD » 0 0 ^
,^ o *>. o -1 00 : T
^ - CD
6p ^ c CD^ O Oo
o " O CD
- - D) S< °-%^ CD 3 X CD _ i 2 .
3o CD O ^ - t CO 73 ^ O
-nS g 6 'B o 3 -t^ CO • v l
o M
vn
TABLE 'J ACHIEVEMENTS MADE BY SOME MAJOR INSTITUTES DlT^lXr. THE SIXTH FlVE-VTiAR
licbii't SuuL(.undue lur I iLSl I lu le
Ndtiiii iy E L C L l i u i i U i D e v i c e s R. I .
li'iLliuiL S u l i d S i d l e C i r m i l i i R. I .
D(j ij i i iy ScttiiLuiuluLtui Dov'iLC:* R. I .
L i j o k c Lab 5 h u l i l u l e
Shauyiidi S c w i c o u d u t l o r DcvUei i R, I.
J 'uui i Gooilcuiidui. l o r I n s l i l u l c
-,.. —. —
TECHNOLOGY
104
59
-
28
40
/
\l —
., —-
PRODUCTS
IQl
Ul
131
41
9
39
36 • -
-.
INVOVATIONS
<>
I
*
• •
>.
^ .
T
U
1
U
6
4
3
4
«d u
• m
c CO
(4
'a <u
- a <a \j
CO (XI
5 »-> 1—1 CO ?!:
K ( _ }
Ix j CO
s ck::
;-9 ca X ^ (_9
r=: S UJ —* l-T
UJ O^ ^ o
--• oi (« * 'a w 1 ^
• L J
<U ««* fi
{ T
72 .. o CT
1 -1
l - ' J
— oi
•n
u ^ > u
ca •.•! w
,^ s c w
.J ^ i ;
u: •^
. , • —)
T ^ '
^ ^ i ^
» Oi 1 ^
o 1 ^
u a c o Ul .^ a u
t-T .^ u
.ja O) 5S
O)
v 0) HS
1 * -
ex:
w o
» J
a •^ o ' a
C'J
'u (—•
OJ Mai
9 * •^ "* '/I e
" rt u at' u a "* "rt o
ss;
'5 J S
1 C-T
• ^ • Of
'A <m)
• « c o ^ mmi
_ l
OJ u o h i '•J
*^^^ *' "
1 •* '*0
» J
^3
. 16 . Dataquest Incorporated, a company of The Dun & Bradstreet Corporation
1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
ro CD o
Q.
a (O
T)
^ o TT ^ n (" V-Q - S w H D) D =3 O <^o o -o - DJ. O CD > p. CO 0) en "
u8 f^-n CO 5 0 0 ^
TAniF II IMPORTED PROJECTS BETWEEN 1981 ami 1985
,^ o °i s j 6° 00 ^ O B" o O CD
•— 3
^n eg.
3o CD O GO'S ^ O -n& » o '^ rj 'S o
j i .
^ o ro CD N)
IC:
' * • •
DISCRETES
-
1981
4
2
1982
10
3
1983
21
10
1984
55
23
1985
14
1
hj CD O
ai a. (D
Tl ^ O yr ^
-<6 ^
w H 0) 13 ^ O •^R O "D
is R ' B O (D > C L
g» cS8 ^^ Si
J!;; o
s j feo CD =" O Oo o O 03 --• 3
^% 2-
3o CD O ^ - 1
03 "D ^ O
-ni o
•(>•
o tv) CO K3
TABLE 12 r^PORTED AND TECHXICALLY REMOULDED PROJECTS IM 1985
ITEMS
LEAC FPXICS:.:AKIXG
GLASS PASSIVATION DIODES
IC:i FOR COLOR TV
LCk-NClSE TRANSISTORS
VARACTORS
SILICON RECTIFIERS
CAPACITY
200 •illlioii |is year
10 niLlLua pb.year
26.48 Billion ps/year
10 nil lion ps/>ear
30 III 11 inn |i:. ;I(MI
15 nil Lion p:i/year
I>0 CD O
3)
a D. (B
Tl
9; o
w " B) 3 Z) O
^5 O "D
ss ° - 03 O 3 > Q.
g» S8 -§
0)
CO CO OD^
_ o
°i 3 ^ So 00 ^ O Qo
o " O CD
~- s s!g ^ 9.
s. 3o CD O cj"a _ o o 00
o K) CD
r\:)
FHJ « « ^V' ' i * ' ? * W * r» iff « \ f5< J» 49 i 0 ,5 ^ PA 11? r j i . rv i rt> *«» ^ j
" * - ^ i ; ^ . _ • » - - ' -«
O C f »
/ A M E P I j ^ * J4ig=a«
'X °/\
J.
t
tllDOCD - CII>A
• 1 5 _ • ' ' ' ^*f^ roft
\ PACIFIC
O C e A N
N
\ M*-j '
^ 1 L***»+ ^
^ \
Aitimtlic Cwttt
sSiSrv". • C A
FIGURE 1 . THE CENTRE OF HUMAN CIl[lLIZATION KEEPS MOVING
laaagtois.iMQ nwi /—AJEI
Approaching the Asian Age
APPROACHING THE ASIAN AGE
J.H, Son Senior Industry Analyst
Asian Components Group Dataquest Incorporated
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of Ttie Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
THIS PRESENTATION WAS Wm AVAILABLE IN TIME FOR TOBLICATION
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Parl< Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
DataQuest n n a company oF MMMM ThcDun&BradstreetCorporation
AMERICA AFTER THE ElECTION—A NEW DIRECTION?
John Wilson Vice President, Business and Technology Analysis
Dataquest Incorporated
Mr. Wilson is Vice President for Business and Technology Analysis in Dataquest's Research Operations Division. He is responsible for analysis of business, political, and economic trends affecting high-technology industries, and also edits Strategic Issues, a monthly newsletter commenting on these trends. Before joining Dataquest, Mr. Wilson was a Senior Writer for Business Week, where he specialized in coverage of technology, international competitiveness, and entrepreneurship. Prior to that assignment, he served as the magazine's bureau chief in West Germany and in San Francisco, where he helped strengthen technology coverage. He is the author of The New Venturers: Inside the High-Stakes World of Venture Capital, the first general-interest book on the venture capital industry. Mr. Wilson is a graduate of the University of Oregon and holds a roaster's degree in Communication from Stanford University. He is a member of the Society of Professional Journalists.
Dataquest Incorporated ASIAN SEMICONDUCTOR AND ELECTRONICS TECHNOLOGY CONFERENCE
November 6-8, 1988 Seoul, Korea
1290 Ridder Park Drive, San Jose, CA 95131-2398 (408) 437-8000 Telex 171973 Fax (408) 437-0292
iB2687001.WG lO/TflfflB-wiI^
Approaching the Asian Age
AMERICA AFTER THE ELECTION A NEW DIRECTION?
John IV. Wilson Vice President
Business and Technology Analysis Dataquest Incorporated
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited Dataquest Incorporated, a company of The Dun & Bradstreet Corporation
1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
|Bg6a7QCg.lMG lltfiafflBWILf
WHERE IS AMERICA HEADED?
RDtiticat Moderation
P Economic Slowdown
P Activist Trade folicy
--J
|B26a70a3.IMG HViartfl.WIL|,
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
182667004.IMG iaiWfleWtL|
U.S. POLITICAL OLYMPICS Republicans
o
^
o
^
f KJ
KJ
• -
New Right
^
•^^ ^.^
o f ^ J
^
Old Guard
l ^ ^ ^
<J
Religious Right
|BgCfl70O5.IMG 10/iaW8^Win
U.S. POLITICAL OLYMPICS Democrats
o o r
J
. J <• J
Old Left
<^
i ^ i ^ - ^ _
u
N L ew -ibe
Ag( rals
J
o
1 ^ ^ k J
Reagan Democrats
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited Dataquest Incorporated, a company of The Dun & Bradstreet Corporation
1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
|2687oociMG igiafftewin
WHERE THEY STAND
On the deficit
On defense
George Bush
For "Flexible Freeze" on government spending
For deploying "Star Wars"
Michael Dukakis
For tougher tax enforcement
For better conventional forces
On trade
On industrial policy
On savings and investment
Against protectionism
Against government intervention
For cutting capital gains tax
For "temporary" protection
For helping depressed regions
Against cutting capital gains tax
Souice: Dataquest
|Bg6B7007.iylG 1Wia/aBWlL[
REAL DISPOSABLE INCOME GROWTH AND THE PRESIDENTIAL ELECTION
Percent Change
/-6-
5-
4
3-
2
1-
0-
-1-
f iL'
X
1 = Incumbent Party Wins
X " Opposition Party Wins
T—1—r—'!—1—1—r—' 1—1—1—H
i 1
X
T f - l — 1 — I — ' 1 1 1 1
X 1
1 1 1 r^
xf
1 1 1 1 '
1 .
1—1—1—r 58 60 64 68 72 76 80 84 88
Source: Dun & Bradstreel
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Parl< Drive, San Jose CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
|BgGB70QB BJG tWia f f lBWI l l
A PARTY SCORECARD Percent of Vote
90
80
70
60
50
40
30
20
10
0
Presidential Vote - Democrat Presidential Vote - Republican
miD Democrats Elected to House of Representatives -Republicans Elected to House of Representatives
n»mwi»w«iHi|||^, ^ x v < " ^"""""iniiftf,,^
"''foi;^^^''''""'""m
1968 1972 1976 1980 1984 Source: Oataquesi
IBgGBTOCDIMG I C V i a / M W l H
WHERE IS AMERICA HEADED?
Political Moderation f^
P Ecorramic Stowdown
P Activist Trade Policy
" --J
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated; a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
12687010. IMG lOifiwaawiri
FEDERAL BUDGET DEFICIT Billions of Dollars
0
1980 1982 1984 1986 1988
Source: Dun & Bradstreet
|agG87oii.iMG ^o/\am'w^^[
U.S. INTERNATIONAL INVESTMENT POSITION Billions of Dollars
200
-300
-400
1980 1981 1982 1983 1984 1985 1986 1987
Source: U.S. Oepaflment of Commerce
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited Dataquest Incorporated, a company of The Dun & Bradstreet Corporation
1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
|BgGe70i2.iMG nyTawewiLj
GNP GROWTH (1982 Dollars)
Percent Change (Annual Rate)
01 02 03 04 01 02 03 04 01 02 03 04 . 1988 •I-" 1989 J-" 1990 •
Source: Dun & Bradstieet
|ftgCB7013IMG lWie/8e.WlL|
EQUIPMENT INVESTMENT Percent Change (Annual Rate) 30
20
10
-10
-20
iTJjLj t=3-
-IHSi-Baseline Forecast- I Loss of Corifidence Scenario
T^
01 0 2 0 3 0 4 01 0 2 0 3 0 4 Ol 0 2 0 3 0 4 1988- 1989- 1990-
Source: Dun & Bradstieet
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
|Bz6a7DT4.iMG iwia/eewiT)
WORLDWIDE GROWTH PROSPECTS Real GNP Growth
Percent
United States Japan
1987
Europe Pacific Rim
1988 1989 1990 Souce: Dun & Bradstreet
WEF* Group
ia687015.iMG 1ttTa>8awn
WHAT IS THE DOLLAR WORTH?
Purchasing Power Parity
Fundamental Equilibrium
Sustainable Equilibrium
Yen DM
203
150
135
2.58
1.75
1.65
Source: U.& International Trade Connnission
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited Dataquest Incorporated, a company of The Dun & Bradstreet Corporation
1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
|BgGg70l6IMG 1(ViafB8WHl
|agCfl7017.MG lOfiaWBWHl
SHARE OF MILITARY EXPENDITURES - 1985
Soutfi A f r i ca ' ^
Source: U.a Arms Conltol and Disarmamenl Agency
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
JBgoflToiBiMG laria/aBWiH
U.S. MERCHANDISE IMPORTS - 1988 (Billions of Dollars)
Source: U.S. Con¥neice Department Dataquest
IBgceroiQ.iMG nwia/96 wii (
U.S. MERCHANDISE EXPORTS - 1988 (Billions of Dollars)
C-^r^y^
^
Source: U.S. Commeice Departnnenl Dataquest
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
paGaToao'lhife' 'lariiwwn
SHARE OF WORLD GDP - YEAR 2000
< ^
|B26870gi.ibiG laria/aewiLi
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
iBgGBTQg.lMG 10/18/86 WlL l
CURRENT ACCOUNT BALANCES Billions of Dollars
160
120
80
40
0
-40
-80
-120
-160
^f f i United Stales ^ Europe CIE3 Japan ^ Pacific Basin
isii: isjss;!"?;: : K « ! SMSiK ;55;5:
#
SSW ^-ij-iv
f^^i •-M
¥-^:
0k m ^w) m
1986 1987 1988 1989
Source: WEFA Group
|26B7oe3.iMG igiafaBwin
U.S. IMPORTS UNDER GSP - 1987
(Billions of U.S. Dollars)
Total GSP Imports Imports Percent
Taiwan
Korea Hong Kong
Singapore
World
$ 24.6 $ 16.9 $ 9.8 $ 6.2 $400.4
$ 4.2 $ 2.5 $ 1.7 $ 1.3 $16.3
17.0% 14.8% 17.40/0
21.0% 4 . 1 %
Source: U.S. Dept. ot Commerce
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
^6a70C4.IMG ItfiaWBWlL I
WHAT THE TRADE BILL DOES
• Expands definition of "unfair" trade
• Requires action against violators
• Broadens list of "unfair" subsidies
• Expedites handling of dumping cases
• Attacks telecommunications barriers
• Strengthens intellectual property protection
• Blocks some foreign takeovers
|Ba6a7025.WG mia/Bewiri
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
|Bg087026MG lona/BawTI
U.S. BALANCE IN HIGH-TECHNOLOGY TRADE Billions of Dollars
25
20
15
10
5
0
-5
• I IIBII
•i l l .
1980 1981 1982 1983 1984 1985 1986 1987
Souice: National Science Foundation
l«»7ee7JMa lonarMwin
PRIORITIES FOR U.S. COMPETITIVENESS
• Restore fiscal discipline
• Strengthen trade policy
• Improve machinery for technology policy
• Increase investment In education
• Widen focus of national R&D efforts
Somce: Council on Competitiveness
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited Dataquest Incorporated, a company of The Dun & Bradstreet Corporation
1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
DataQuest n n a company of MMMM The Dun &Bradstreet Corporation
JERRY LYNCH
DIRECTOR OF SALES
ADVANCED MICRO DEVICES
Jerry Lynch received a BSEE from Southern Methodist University
In 1965. After college he worked for Texas Instruments In Dallas
In Integrated circuits product marketing.
He went to Japan In 1967 with Texas Instruments to set up
the sales organization In Asia with Focus on Integrated circuits.
He joined Falrchlld In Japan In 1970 and was vice President
of Marketing and Sales for T.D.K. Falrchlld, a Joint venture
between the two companies.
After 6 years In Japan, he spent two years In London with
Falrchlld as Area Manager-Northern Europe.
He has been with AMD since 1975 In various International
sales positions with primary focus on Asia.
Data quest conference Seoul-Korea Nov. 7-8, 1988
1290 Ridder Park Drive, San Jose, CA 95131-2398 (408) 437-8000 Telex 171973 Fax (408) 437-0292
Ba«gioiT.«iiG iQgiwaJEfl
Approaching the Asian Age
U.S. COMPANIES' MARKET STRATEGIES FOR ASIA: AN OUTSIDER'S VIEW
Jerry Lynch Director of Strategic Program and Southeast Asia Sales
Advanced Micro Devices
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
r
V
U.S. Companies Market Strategies for Asia
An Outsider's View
Jerry Lynch Director Asia Sales
Advanced Micro Devices
DATAQUEST NOV 88
^ r ^ Market
ii
Products
DATAQUEST NOV 88
- 1
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
r Spheres of Influence ^
DATAQUEST NOV 88
r
Manufacturing
DATAQUEST NOV 88
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
r Strategy ;i
l l * ^ . v " i i ! ••
tr^t-- "^•.
Market i l in i i^^r^. l
Products
DATAQUEST NOV 88
21 AsiaLC. Market
1986 % of World 7.3%
1987
10.1%
1988 11.4%
1989
12.2%
DATAQUEST NOV 88
3 -
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
r AMD's Primary Mission
Supply total high-performance system solutions to the manufacturers of computation and communications equipment
DATAQUEST NOV 88
f 100
80
^ 60 c <D
1 40
20
Asia Semiconductor Consumption
f.,. • j f .
r - . , ' - ' • f- •
F'-^'E:';; ^ .
& • : . • ' ' • • • # • : ••
1986
Consumer mM L
H s ^ l EDP ^ ^ ^ ^ 1
Telecom ^ ^ ^ ^ ^ H Industrial ^ ^ ^ ^ ^ H
1990
^
DATAQUEST NOV 88
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
r Environment
Trade Barriers
Protectionism
intellectual Property
Asia
- DATAQUEST NOV 88 -
American I.e. Suppliers 1987
AMD AMI Chips & Technology G.E.
1987 Market Share:
American Total IC Market
G.I. Intel Micron Motorola
32%
National Silicon Systems Tl.
- DATAQUEST NOV 88 -
;i ':
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
r American Asia Strategy
Foreign language and cultures
Local market requirements
Local purchasing and financial systems
Tough competition
DATAQUEST NOV 88
- 6 -
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
DataQuest n n a company of , l i l f The Dun &Bradstreet Corporation
MARKET OPPORTUNITIES FOR U.S. COMPANIES: AN INSIDER'S VIEW
Goh Geok Ling Vice President
Asia-Pacific Division Texas Instruments Singapore (PTE) Ltd.
Mr. Ling is Vice President of Marketing for the Asia-Pacific Division of Texas Instruments. Earlier positions have included Director of Texas Instruments Singapore, a member of the Board of Texas Instruments Asia Limited (Delaware), Manager of the TI's Asia-Pacific Division, Marketing Director for Asian countries and India, Planning Manager of TI's Singapore Plant, Product Manager for Discrete and Metal Oxide Semiconductor Operations, Planning Manager, and Project Manager for Assembly Functions. Mr. Ling received a bachelor's degree in Engineering from the University of Sydney.
Dataquest Incorporated ASIAN SEMICONDUCTOR AND ELECTRONICS TECHNOLOGY CONFERENCE
November 6-8, 1988 Seoul, Korea
1290 Bidder Park Drive, San Jose, CA 95131-2398 (408) 437-8000 Telex 171973 Fax (408) 437-0292
|Beagioie.MG lopiweja^
Approaching the Asian Age
MARKET OPPORTUNITIES FOR U.S. COMPANIES:
AN INSIDER'S VIEW Goh Guek Ling
Vice President, Asia Pacific Division Texas Instruments Singapore Pte. Ltd.
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
Qood Morning Ladies and Gentlemen,
^Ihis morning the topic of my speech is Market Opportunities far U.S. Coapanies : An Insider's View.
Ihe Asia Pacific Region offers an opportunity that is unique and yet difficult to coaprehend. Ttiis region enaonpasses mare than 60% of the world's population and is made up of many races, cultures, religions and languages. It can be reasonably divided into countries with 4 stages of economic developvent.
Shese are as follows:
A) Japan which has reached a stage of ecanondc and technological development with a high per capita income of US$18,000. This matches or exceeds that of many Western Countries. It is a difficult market but is the single largest opportunity in Asia.
B) In the second grouping are the four Newly Industrialized Countries (NICs) of Korea, Taiwan, Hang Kong and Singapore. In these four countries, per capita inccsae is approaching US$7000 annually. This in itself is creating a potential domestic market far product that are being produced or JjnpartGd. Ihese four countries share one camnon shortfall - the lack of natural resources and in the case of Singapore and Hong Kong, the necessity to import food to feed their population. TWenty years ago these countries shared the same dilemma. They were all faced with high unemployment and yet possessed few industries of any significance. Through adversity and the need to survive in difficult environment, these countries with stable governments, diligent, educated and trainable workforce have registered up to double digit economic growth in the past decade. The route taken by each of these countries may differ but it could be summarized as a combination of the promotion of local industries, the courting of foreign investment and the continuous expansion of specifically identified industries.
-1-Dataquest Incorporated, a company of The Dun & Bradstreet Corporation
1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
C) Jhe third grouping consists of Malaria and Thailand and possibly in the future the Fhilippines and Indonesia. These countries represent gra^rth opportunities for foreign jjxvestars in this region. All these countries are blessed with abundance of natural resouxx^es. Malaysia, with a per capita Income of US$1600 per year, has tremendous natural resources such as tin, petroleum and natural gas. She has developed her comrodity based industries and is preeminent in her exploitaticm of palm oil, ivtijer, tin, oil and gas. Following its close neighbor Singapore, Malaysia has attracted significant foreign investment in the electronics industry. Today Malaysia is also one of the world's largest exporter of semiconductors. Thailand with a population of 54 million people has been successful in attracting foreign companies from USA, Japan, and Europe in the past three years. Per capita inccne has increased from US$400 per year in 1985 to ap^axxiioately US$700 per year in 1987. In this category, both Indonesia and Fhilippines could be new targets of opportunity.
D) The fourth category is China and India. These countries represent an opportunity far Western countries to participate in the future growth of their confined domestic market of 1.8 billion people. Together they account far 43% of the world's population. Unfortunately the per capita income of these two countries is low at US$300 per year. China, as you know, has been experimenting with the free eaonoay oonaept for the past 10 years. It has recently announced a temporary price restraint for two years to curb excessive inflation which rose to 20% in 1988. While the repercussions of this new direction is detrimental to many investors in China, it nevertheless repres&its a hopeful sign that the government is capable of taking hard and unpleasant measures to ensure its future survival.
India, a country of diverse cultures and languages represents a fairly large potential to foreign investors who are willing to comply wiUi the local laws an investment to participate in this market. It has been estimated that approximately 70 million people in India are in the annual inooaie group of US$2000 per annum, which by itself creates a sizeable consumer market.
Both the PFC and India, however, are plagued with poor infrastructure and as such constant inprovement and upgrading will be required to inprove the efficiencies of their industries.
-2-
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
I have given you a breakdoun of the economies of Asia which are at four distinct stages of economic development. Looking at these countries from a different perspective, only Singapore and Hong Kong offer free trade with little to TXD restriction to foreign investors who wish to participate in their local market. Of course, these two countries have come to realize that their small population afford them little to no comfort to protect their home markets but to compete in the world markets tZirough higher productivity and efficiencies. All the other countries in Asia do possess significant taarkets in their awn rights and while they are openly courting foreign investments for export purposes, they have protected their local market through various measure.
These are as follow:
1) Unpcart duty levied on ccmpanents and finished goods. 2) Uplift on CIF values before the inposition of import duty. 3) Outright protection on certain segments of the industries.
These are usually very subtly carried out. 4) Requirement of local equity partners for projects aimed at the
local market. 5) Balancing on export and ii port requirements.
I would like now to give ycu a brief breakdown of the barriers and qpportu/iities for each of the countries in this region.
Korea
Korea has a population of 43 million people. She is currently a major exporter of VCRs, Televisions, Microwave Ovens, Audio products, autanobile and other consumer products. With the investments made by Samsung, Hyundai and now Goldstar, Korea is also an exporter of semioonductars to world markets. Kcxea plans to increase her R&D spending from 1.58% of GDP in 1987 to 5.0% in 2001 to enable her to produce and compete in the higher end technological maxket. Not contented with her success, Korea has mapped a very aggressive five year plan to be one of the 10 largest exporting nations in the world. To achieve this aim, Korea would have to expand exports of existing products to n&f geographical frontiers such as the PRC and the Eastern Bloc, and pioneer higher end consumer, computer and communication products. It is also envisaged that, with the growing prosperity and wealth, Korea will be a creditor nation by 1991. This, with the growing trade balance in her favor, will require Korea to continually rethink her posture on imports and status of foreign companies operating in the country. Currently, Korea imposes an import duty of 10% on semioonductars and 20% an computers. In consumer products, Korea inpDses a 20% import duty on television sets to which must be added a 40% consumption tax.
-3-Dataquest Incorporated, a company of The Dun & Bradstreet Corporation
1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
It 2JS probable that in the foreseeable future we will see the reunification of North and South Korea. This would result in a greater Korea with a larger market with mineral resources at her disposal.
Taiwan
We have seen this country continually reducing impart duties far semiaanductors and oonputers. However, she still levies a 17.5% inpart duty far television and to this is added another 20% oanscodity tax. Taiwan, with a foreign exchange reserve of US$72B, can afford to be mare aacoianodative to foreign investors. Unlike Korea, whose economy is largely dominated by the 4 Chaebols, Taiwan's economy is evenly spread among entreprenesjrs who abound in tiiis country.
In the past five years, Taiwanese entrepreneurs have been scaling new heights technologically. The country boasts of 3 diffusion plants which are in operation to which nvst be added another three plants in various stages of construction. The free wheeling entrepreneurial spirit has resulted in many Asia Design Houses far computer and peripheral products. A visit to Hsiridhu Science Pazk will be a testimony of the proliferation of many new hitech companies and major expansion of existing ones. Today, Large carporatians such as Taiwan Semioanductar Manufacturing Corporation, Acer and Mitac and others are operating there alongside other smaller companies.
Hona Kona / Singapore
Hang Kong and Singapore have little to no barriers against foreign investment. Both countries have been the manufacturing bases for foreign manufacturers from the U.S.A., Europe and lately Japan.
Hong Kong is further augmented by many local manufacturers such as Videotedh, Bondwell, Af^lied Electronics, etc. Both countries possess good infrastructure far the financial and service industries in this region and will continue to remain so.
Both countries are suffering from labor shortage but have approached this problem in their own separate manner. In Hang Kong many labor intensive industries have moved their manufacturing operations to the Special Economic Zones (SEZ) in the People's Republic of China to take advantage of the abundance of low cost labor there. It is estimated that ap^xraximately 200,000 manufacturing jobs have Jbeen created by Hong Kong ccsnpanies in I^iC far this purpose.
-4-
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
In Singapcare, while the government is enaouraging industries with high labor content to move to Malaysia, she has at the same time encouraged cxxrpanies operating in Singapore to mechanize and to migrate to higher value added products. Uns is done through financial inducements and through govemTnent funded training of the workforce. In addition, she has adopted a pragmatic policy to allow the hiring of workexs from neighboring countries to supplanent her labor needs.
Singapore has also been vigorously pursuing miltinational conpanies to take advantage of her strategic location and has actively sought these CDR panies to set up their Operational Headquarters (OHQ) and International Purchasing Offices (IPO) in Singapore.
7?v>T7ary? / MaTaystTa
Much has been written about Thailand and Malaysia joining the league of newly industrialized countries within the next five years. In the acaompanying slide you will note that both countries do protect local markets with high import dlities ranging from 12.2% to 50% depending an the products iiported. Both these countries require local equity if the manufactured product is primarily targeted far the local market. However, lower labor costs than the four NICs will give Malaysia and Thailand a competitive edge where labor content is a major factor. Many Americans, Taiwanese, Japanese and European conpanies are capitalizing an these opportunities to minimize high cost of mechanization.
PRC
The PRC has continually increased its import duty for semiconductor, computer and cansumer pzxducts in the past four years. In the aaaompanying slide you will note that semioonductars carry duties ranging from 25% to 40%, computers from 30% to 80% while television is banned. Duties for other consumer goods ranges from 50% to 200%.
These duties were levied primarily to curb the pent up demand for imported products which resulted in a drain on it foreign exchange reserve. This reserve fell to a critically low level of US$8B in 1984. The foreign exchange reserve has recently risen to $183 but the value of the PR:: Ftireign Exchange Currency (FEC) has fallen from 2.4 FEC to US$1 in 1984 to 3.7 FEC to US$1 currently. In the unofficial market it will require 7 to 8 Penminbi to exchange far US$1.
-5-
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive. San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
The Fl^ has enacted several new laws in the past few years to transform state-owned aorpcratlans to enterprises. To improve industrial efficiency, the PRO government is planning to reduoe stat&=awned sector from 60% in 1987 to 30% in 1993. In an attenpt to encourage foreign investment, 100% new foreign investment is now allowed far companies wishing to participate in the local market. However, because of the shortage of foreign exchange, ccnipanles axe required to balance their foreign exchange requirement. In the present economic environment in the PRO, companies are urged to be patient and cautious in their investment there. However, due to its size and population of I.IB people, one cannot choose to ignore completely this market from a strategic point of view. Ihe aonaept. of a greater China consisting of JRRC/ Hcayg Kong and Taiwan could be a reality within the decade. This would create anew market horizon in these countries.
India
In India the duties for many products have been continually readjusted in the past few years. Hi^ duties of 60% to 314% fear semiaonductacs and ooniputers certainly deters iirport of these products. In truth a personal coaputer while technically importable would require a memory size ap^iroach a mainframe before such ijiport is considered legal. In order to participate in the local market, foreign investors are required to hold less than 40% of the equity to qualify as an Indian company. DEC has recently formed a joint venture company with its local partner, Hinditron, to participate in this market. In the recent two years, the Indian Government has aljx> included export requirements for joint ventures operating in India. Bureaucracy and Governmental requirements tend to delay any potential new operation in India. Nevertheless, like China, this is a raarket that few can completely ignore from a strategic point of view.
Japan
I do not intend to discxiss in great detail about Japan as many of you would be better informed than I in this market. However, it would suffice to menticm that this great land of consumer innovation and production would also be hard pressed to make reforms in opening up her nea:ket, readjust to the strengthened Yen, readjust to pressures from her trading partners in the Western World and face ccgipetitian from the lower cost producers, from the four NICs plus the newly emerging nations of South East Asia Companies planning to participate in the Japanese market mast also learn to prise open the Japanese distribution system.
-6-
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
A parallel to Japan today is \djen the U.S.A. and Europe started moving their unoonpetitlve industries to lofer cost regions in Asia in the late fifties. Japan is approaching this same crossroad with but its singular vigor, planning and stamina, Japan would undoubtedly oame out of this upheaval unscathed.
I would no^ like to give you a briefing of Texas Instruments in Asia. IWenty years ago, Texas Instruments built its first Asian plants in Japan and Singapore. Since then we have added plants in Taiwan, Malaysia and the Ifiilip^dnes. Today, we have a total of 8 plants in Asia plus sales, nmzketing, application and Asic Design establishments in all major cities in Asia and a software design centre in Bangalore (India). This year we have also started a bar design centre and will establish a factory for our Semicanductar and Metal & Control products in Korea. The total Asian activities have contributed US$709M of trade billing and to our corporation in 1987.
In closing, I would like to reaffirm our faith in Asia and we are glad to have made the significant investments for the past 20 years in what is now termed as "iTie Fasted Growing Region In 37ie World".
-7-
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
DataQuest n n a company of I f J l The Dun & Bradstreet Corporation
JAPANESE ELECTRONICS MANUFACTURING IN ASIA: AN OUTSIDER'S VIEW
Arthur T. Suyama General Manager, International Marketing Division
Matsushita Electronics Corporation
Mr. Suyama is General Manager of the International Marketing Division of Matsushita Electronics Corporation (MEC). Previous positions at MEC have included General Manager of Export for the Semiconductor Sales Division and Semiconductor Sales Manager in the Chicago office. Mr. Suyama received a degree from the Science Faculty at Osaka University.
Dataquest Incorporated ASIAN SEMICONDUCTOR AND ELECTRONICS TECHNOLOGY CONFERENCE
November 6-8, 1988 Seoul, Korea
1290 Bidder Park Drive, San Jose, CA 95131-2398 (408) 437-8000 Telex 171973 Fax (408) 437-0292
|B2eg1019IMG laPIWflASEI
Approaching the Asian Age
JAPANESE ELECTRONICS MANUFACTURING IN ASIA:
AN OUTSIDER'S VIEW Arthur T. Suyama
General Manager, International Marketing Division Matsushita Electronics Co.
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Parl< Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
JAPANESE ELECTRONICS MANUFACTURING IN ASIA
AN OUTSIDER'S VIEW
A r t h u r - T . S u y a i n a G e n a i ~ a I M a n a s e r I n t . « i - n a - t i o n a I M a r - k « - t i n « D i v i s i o n
M a t s u s H i t a E I « c t r o n i c s C o r - p o r - a t i or J a p a n .
CONTENTS
1. PRODUCTION TREND OF CONSUMER EQUIPMENTS IN JAPAN
2. PRODUCTION TREND OF INDUSTRIAL EQUIPMENTS IN JAPAN
3. EXPORT RATIO OF ELECTRONIC EQUIPMENTS IN JAPAN
4. BACKGROUND OF OFFSHORE PRODUCTION OF JAPANESE ELECTRONIC COMPANIES
5. EXCHANGE RATE OF JAPANESE YEN
6. REGIONAL PRODUCTION TREND OF JAPANESE MANUFACTURERS
7. IMPACT OF JAPANESE OFFSHORE PRODUCTION OF EQUIPMENTS ON SEMICONDUCTOR PROCUREMENTS
8. SOURCING OF SEMICONDUCTOR FOR OFFSHORE PRODUCTION OF ELECTRONIC EQUIPMENTS
CASE: MALAYSIA ( COLOR TV )
9. JAPANESE SEMICONDUCTOR EXPORTS i IMPORTS
10. SEMICONDUCTOR TRADE BETWEEN JAPAN AND NIES/ASEAN
(1) COUNTRY BY COUNTRY
(2) PRODUCT BY PRODUCT
1 1 . PRODUCTION ITEM OF SEMICONDUCTOR IN ASIA BY JAPANESE MANUFACTURERS
12. GLOBAL SHIFT OF ELECTRONIC EQUIPMENT PRODUCTION
13. FUTURE TREND OF SEMICONDUCTOR SOURCING FOR EQUIPMENT OFFSHORE PRODUCTION
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
1 . PRODUCTION TREND OF CONSUMER EQUIPMENTS IN JAPAN
t r l l t ion Ven
2
1 5
0 . 5
COLOR TV
^•-
TAPE RECOHDEB ^
oJ—?
BAirv ^ CAHCOSDER i
•"'" PACKAGED AUDIO STSTEHS 19GS 70 75 IT
SOUBCE: E I A J
2 . PRODUCTION TREND OF INDUSTRIAL EQUIPMENTS IN JAPAN
Tri i l ion Yen
5 l
O
COUPUTER
(UAIMFRAME COMPUTER PERSONAL COMPUTER UINt COMPUTER OFFICE COMPUTER PER I PHERAl. EQU I PUENT/
WIRED COMMUNICATION
^ .RAPlO COMMUNI CAT I ON
TESTING. MEASURING ANO •f \p^ ANALYZING EQUIPMENT
OFFICE AUTOMATION
1965 76 IS 80 »
SJIIBCE: E I A J
Dataquest Incorporated, a company of The Dun & Bradstreel Corporation
1290 Bidder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
3 . EXPORT RATIO OF ELECTRONIC EQUIPMENTS IN JAPAN
(.%•>
80
70
60-J
50
4.0
30
20-
10-
CONSUHER EQUIPMENTS
INDUSTRIAL EQUIPKENTS
—r •—
1968 '69 "70 '71 "72 '73 -7+ '75 "76 '77 '78 '79 '80 '81 '82 '83 '84 '85 *86 '81 '88 '89
SOUfiCE: E I A J
4 . BACKGROUND OF OFFSHORE PRODUCTION OF JAPANESE ELECTRONIC COMPANIES
f E U R O P E ]
C A T C H - U P B Y N I E S
KOREA. TAIWAN
Continuous Expansion of Offshor* Production
I T R A D E F R I C T I o i T ] Iradt litbd lance
f U S A j
HIGH APPRECIATION OF JAPANESE YEN
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
5 • EXCHANGE RATE OF JAPANESE YEN ( VS US$ )
Y e n 350 T —
300
25?'
208-
I K -
100
297 i:yti
e ' I I 1 I r-1975 76 77 78 79
SOURCE : Nikkei shinbun. Japon
I I I I I 1 t T
8 1 8 2 8 3 8 4 8 5 8 6 8 7 8 8
6 . REGIONAL PRODUCTION TREND OF JAPANESE MANUFACTURERS
0 10 20 30 40 50 GO 70 80 90 100 C O L O R TV I J ~-l- L, 1 1— -"— 1 ' 1 1 85 n Q C
86 n Q C 66 1 1 1 1 7 1 16 I
50 22 I S I 20 I
87 n Q C 39 26 1 9 1 26 I
JAPAN NIES EUROPE USA TAPE RECORDER
85 n Q H 86 n Q C
57 4_3
44 S6
87 no I 17 r JAPAN
STEREO ,
85 no i
83 NIES
74 I 24
86 n Q I 87 n Q C
66 32 1^ 60 37 n JAPAN
VTR 85 n Q L 86 n Q C 87 n Q C
^-"'.y^^ir^y. -";", 93 =
NIES EUROPE
- - II 61
90 iT~3n B6 i l l ? II
JAPAN : 11 1 ?
NIES I USA
eURbPE
SOURCE : NRI , JAPAN
4 -
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
7 . IMPACT OF JAPANESE OFFSHORE PRODUCTION OF EQUIPMENTS
ON SEMICONDUCTOR PROCUREMENTS
EQUIPMENT OFFSHORE PRODUCT ION
Nl ES
K O R E A . EQU 1 P. I SEM 1 COND.
SEMI CONDUCTOR PROCUREMENT
T A . i \ A / A M EQUIP. rsEMICOND
M O M G K O M Q EQUIP. ISEMICONO.
S I tvl C3 A . r=* O R EQU I P. pSEM I COND.
I l _ I l =F= I M l EQU I P. rsE** I COND.
»S/I A l _ A . Y S I A EQU I P. [SEM I COND.
I M P O r-4 E S I A EQUIP. I SEM I COND.
T H A I l _ A M D EQU IP . I SEM ICC5ND7
ASEAN
8 . SOURCING OF SEMICONDUCTOR FOR OFFSHORE PRODUCTION
OF ELECTRONIC EQUIPMENTS
CASE : MALAYS I A
— COLOR TV —
JAPAN FD I
:>
IVt A . I_ A . Y S I A . IIPOR
EQUIP . PRODUCT ION
SEM tCONDUCTOR DEMAND
U. S. A.
^^2S2sh^ EUROPE
LOCAL CONSUMPTI ON
LOCAL SEMI CONDUCTOR PRODUCT I ON
^ EXPORT
JAPAN
I ASIA (NIES/ASEAN )
- 5
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
9 . JAPANESE SEMICONDUCTOR EXPORTS & IMPORTS
T&Q''"'' dMD
H OH o 0.
^ROW 2 0
1 1 8 N. AMERICA!
£5C l g 7 •'•llOWO.i
179 N.AMERICA
1 ^ 172 ^ S * " ! 173 iibiA^^.i^^^H
2 7 0 ^B0U0.1
l g 9 ASIA 37" BOH 0.1
Source : Ministry of Finance (Japan)
10. SEMICONDUCTOR TRADE BETWEEN JAPAN AND NIES/ASEAN
( 1 1 COUNTRY BY COUNTRY 1988 JAN.~JUNE. U o i t : b i I I i o n y e n
CK i p i n c I u d o d
Source : Uiniitrr of Financ* (Jopon)
- 6 -
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
121 PRODUCT BY PRODUCT C 1 9 8 8 JAN - JUN >
[ IMPORTS]
UOS yenory Uicro Losic
Bipoir Oisitdl Linear
Discrete Hybrid Chip
T o t a l
Million
1.6 1,0 2.1 1.7 4.3 8.9 2.3 0.1
22.0
Structure
1% 5
10 8
19 40 10 1
1 0 0 %
JAPAN
IMPORTS
22Bil
EXPORTS
222 Bi
[ EXPORTS ]
X7 NIES&ASEAN
UOSUenory Uicro Logic
Bipoir Di{itol Linear
Discrete Hybrid Chip
T o t a l
Hillion
42.6 22.0 24.2 6.8
35.0 38.5 7.8
45.1
222.0
Structure
19% 10 11 3
16 17 4
20 1 0 0 %
Socir-ce : M i n i s - t r - y o f f i n a n c e ( J a p a n )
11. PRODUCTION ITEM OF SEMICONDUCTOR IN ASIA BY JAPANESE MANUFACTURERS
1967- DISCRETE (TR,DIODE)
1980-- BIPOLAR LINEAR
1985 ~ MOS MEMORY (64K/256K/1M DRAM)
1987- MOS LOGIC (ASIC)
SOURCE:MATSUSH I T A
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
12. GLOBAL SHIFT OF ELECTRONIC EQUIPMENT PRODUCT I ON
Purchase of IC
for Offshore Production
PEflrPJCRALS
F i n a l Consunption
of IC
13. FUTURE TREND OF SEMICONDUCTOR SOURCING
FOR EQUIPMENT OFFSHORE PRODUCTION
OFFSHORE
PRODUCT I ON
OF
EQUIPMENTS SaiCOKDUCTQR
MOS MEMORY
MICRO
LOGIC (ASIC)
BI POLAR L. I NEAR
DIGITAL
DISCRETE
SOURCING
( A ]
LOCAL PURCHASE
(Locally Assembled )
( Increose of Design Center)
[ B ]
I M P O R T
(SEMICONDUCTOR)
EC) t b i t UCU
EG) vrfl
[ C I I M P O R T
(ON BOARD / WITH KIT)
^THA I L A N D
P H I L I PR I N E
U N D O N E S I A
SOURCE: M A T S U S H I T A
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
DataQuest n n a company of MMMB The Dun &BradstFeet Corporation
THE EMERGING EUROPEAN-ASIAN CONNECTION
Yi-Chiang Lo President
Philips Taiwan Ltd.
Mr. Lo is President of Philips Taiwan Ltd. Previously, he held a variety of engineering and management positions at Philips Taiwan, most recently as Executive Vice President of Manfacturing/Engineering and Quality Management. Earlier, he was Executive Vice President for Quality Management and General Manager, I.C. Factory Manager, and an I.C. Engineer at Philips Electronic Building Elements Industries. Mr. Lo attended the National Chen Rung University, where he majored in Physics, and took the Executive Management course at Harvard Business School.
Dataquest Incorporated ASIAN SEMICONDUCTOR AND ELECTRONICS TECHNOLOGY CONFERENCE
November 6-8, 1988 Seoul, Korea
1290 Bidder Park Drive, San Jose, CA 95131-2398 (408) 437-8000 Telex 171973 Fax (408) 437-0292
jBgflglOM.IMG TO/gl/Be:AS£|
Approaching the Asian Age
THE EMERGING EUROPEAN-ASIAN CONNECTION
Y.C. Lx> President
Philips Taiwan Ltd.
1988 Dataquest Incorporated November 7 — Reproduction Prohibited
DataQuest n n a company of MiMB The Dun &Bradstreet Corporation
PERSONAL MARKET OPPORTUNITIES FOR ASIA
Sheridan Tatsuno Senior Industry Analyst Asian Components Group Dataquest Incorporated
Mr. Tatsuno is a Senior Industry Analyst for Dataquest's Asian Semiconductor and Electronics Technology Service (ASETS). He is responsible for analyzing Asian high-technology industry trends, economic and political issues, Japan-Asia relations, and emerging Asian market opportunities. Prior to joining Dataquest in 1983, he had seven years of experience in market research, planning, and international finance with Bechtel Corporation and Woodward-Clyde Consultants. Mr. Tatsuno received a B.A. degree in Political Science from Yale University and a master's degree in Planning and Policy Analysis from Harvard University's Kennedy School for Government. In addition to these credentials, Mr. Tatsuno is fluent in Japanese, French, and Spanish, and has authored a book called The Technopolis Strategy; Japan High Technology and other Control of the 21st Century.
Dataquest Incorporated ASIAN SEMICONDUCTOR AND ELECTRONICS TECHNOLOGY CONFERENCE
November 6-8, 1988 Seoul, Korea
1290 Bidder Park Drive, San Jose, CA 95131-2398 (408) 437-8000 Telex 171973 Fax (408) 437-0292
IBasgnBiMG ittgi/eeJEFI
Approaching the Asian Age
PERSONAL COMPUTER MARKET OPPORTUNITIES FOR ASIA
Sheridan Tatsuno Senior Industry Analyst
Asian Components Group Dataquest Incorporated
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
|to710(g.MO 10fi»M:T»T|
AGENDA
Worldwide PC industry trends
Emerging PC standards
Asian market opportunities
|Bge71003.IMG 11VSB/Be:TAT|
WORLDWIDE PC INDUSTRY TRENDS
• Worldwide
• United States
• Asia
• Japan
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited Dataquest Incorporated, a company of The Dun & Bradstreet Corporation
1290 Ridder Park Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
ItorioiMiMG loBgwTiSTl
ESTIMATED 1988 WORLDWIDE PC MARKET SHARES
Units If-Sold Value m IBM • Apple El Commodore M Compaq • NEC M Atari M Tandy ^ Zenith H Olivetti • Others
2:9%
Source: Da&quest
b«7ioi»i»its laimffim
WORLDWIDE PC SHIPMENTS (VALUED UNDER $10,000) BY REGION
(Thousand of Units)
1988 1991
Total 21,882.7 29.385.8
1988-1991 % CAGR
United States Canada Western Europe Japan Rest of World
9,816.6 840.3
4,070.1 2,209.7 4,946.0
12,640.3 1,114.1 5,343.7 2,677.7 7,610.0
8.8% 9.9% 9.5% 6.6%
15.4%
10.3% Source: Dataquest
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a connpany of The Dun & Bradstreet Corporation 1290 Ridder Parl< Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
|Ba»7ido6'.iMG wwaafflSTATi
ESTIMATED WORLDWIDE PC SHIPMENT TRENDS BY ARCHITECTURE
1988 1991 Non-DOS PC Bus AT Bus MCA
Total =21.9 Million Units Total = 29.4 Million Units
Souice: Dataquest
Ib«7iwi7.iiife loraawlgfl
ESTIMATED WORLDWIDE PC SHIPMENTS BY MICROPROCESSOR
1988
4.7%
Total =21.9 Million Units
m 8088/8086 m 80286 ^680XX • 80386 13 80486 • Others
1992
2S%
Total s 29.4 Million Units
Souice: Datai^iest
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited Dataquest Incorporated, a company of The D u n & Bradstreet Corporation
1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
|h2e7100eJMG lOOB/aeTATI
ESTiMATED 1988 U.S. PC MARKET SHARES
Units If-Sold VSalue
IBM Apple Tandy Commodore Zenith Compaq Atari AT&T NEC Toshiba Others
Source: Dalaquesi
|&»710(B.MG 10raWBe:TAT|
U.S. PERSONAL COMPUTER FORECAST
Millions of Units Billions of Dollars
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
j^lOIOJMG HKtfBB^T^
ESTIMATED ASIAN PERSONAL COMPUTER PRODUCTION
(Thousand of Units)
Taiwan South Korea Singapore Hong Kong Other
Total
1987
2,098 1,327
160 19 70
3,674
1988
2,559 1,970
247 44
126
4,946
1991
3,853 2,966
377 136 278
7,610
1988-1991 o/o CAGR
14.6% 14.6% 15.1% 45.7% 30.20/0
15.4% Soutce: Oaiaquesi.
pgzion.iMG iQPtraa:TAt|
ESTIMATED ASIAN PERSONAL COMPUTER MARKET
1986-1990
1986 1987 1988 1989 1990 CAGR
Shipments (Thousands of Units) 227 3BS 548 795 1,150 50%
Market Size (Millions of U.S. $) $220 $410 $980 $1,550 $2,200 78%
Average Price $969 $1,123 $1,788 $1,950 $1,913 19%
Souice: MIC/Ill. ERSO
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
|Bge7toi2M6 loraa/telAYI
JAPANESE PC MARKET
• The market is dominated by three groups:
57.8% 11.2%
Panacom M (Matsushita)
24.0%
• The remaining 7 percent is "others"
IBM PC AT
r AX Computers • Sanyo • Mitsubishi
I J3100
(Toshiba)
Souice:ERSO
[gg7tOI3.mG 1ttgarttf:TAT|
JAPANESE PC SHIPMENTS, BY CPU
(Thousand of Units)
1983-1987 1983 1989 1985 1986 1987 % CAGR
8-bit 16-bit 32-bit
Total
719 166
0
885
917 279
0
1,196
789 398
0
1,187
685 551
0
1,236
457 728
15
1,200
(10.7%) 44.7%
7.9% Source: JEIDA
Daiaquest
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited Dataquest Incorporated, a company of The Dun & Bradstreet Corporation
1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (-(408) 437-0292
|Bg971014.MG lOgBreeTitj
EMERGING PC STANDARDS
• Competing standards
• IBM's PS/2 strategy
• Extended Industry Standard Architecture (EISA)
• NeXT Computer
| to7ioi5iMS loraanelarn
THE GLOBAL BATTLE FOR PC MARKET SHARE
\ ^ Xx
Souice: Dataquest
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited Dataquest Incorporated, a company of The Dun & Bradstreet Corporation
1290 Bidder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
pfflOieiMG IQgtfBeiTATI
DATAQUEST PREDICTS: IBM PRODUCT STRATEGY FOR THE NEXT 15 MONTHS
An 80286-based AT bus system ($1,995)
The Model 60 becomes and 80386SX tower
A new portable based on the 80386SX
A 25-MHz Model 80
ItaiKifJUa i6attm^>kf\
IBM PS/2 PRODUCT STRATEGY
(Continued)
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
^BgB7l016.WG 1(Waa/B6T*T I
IBM PS/2 PRODUCT STRATEGY
Current First Half 1988 Second Half 1988 1989
KK^«>.MWJJ^VWV.SAfJ,W,f.
?S«*S?SS^SS?SSS^^?^
USSS^V^::
386 286 i n 8086 Source: IBM
Dalaquest
|2BTt019IMG igP^BeTATt
DATAQUEST PREDICTS: COMPAQ PRODUCT STRATEGY FOR THE NEXT 15 MONTHS
• Introduce multiuser 80386 and 80486
• Become an OEM for 8088 and 80286 systems
• The first 80486 vendor
• Introduce an 80386-based portable (clamshell)
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Parl< Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
(aVideoiMG lOPffaeTATl
WHAT WILL 80486-BASED PCs BRING TO THE MARKET?
82385 integration
Faster throughput
Multiprocessing
Integrated floating-point option
$1,200 price tag for chip
First system - Fall 1989 (Compaq)
PROJECTED WORLDWIDE OPERATING SYSTEM SHIPMENTS
Millions of Units
15
12
9
6
DOS
jmiiLosc.
^^^v^v . . . « » - » " ' " '
>wf rt^vi^ Att\V AV\^\^'
AXV«^^ ' W^
IB2«7Kgiiit laawTiSn
vxx^^^ A\ ^ ^
x ^ ^ ^ \^ ;« C
.xv^«^^' ^v^tt^^'
pv\
1988 1989 1990 1991 1992
Source: Dalaquest
1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
IggyifggtMG lorewaeTATi
EXTENDED INDUSTRY SYSTEM ARCHITECTURE (EISA)
Compete with IBM's micro channel (MCA) Compatible with existing AT bus, 80386, 80486 Microsoft Involved Features: - 32-bit address and data bus extension - 32-bit direct memory access - 32-bit bus-master support - Programmable board setup
iBge7l023IMG 10r26/aeTAT|
WORLDWIDE PC SHIPMENT FORECAST BY BUS TYPE
Millions of Units
12
8
* ISA
Total M jv ^
^ tISA
0 1988 1989 1990 1991 1992
Souice: Dataquest
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
pgaTIOW.MG 1(WaBffl8:TAT|
ASIAN PC OPPORTUNITIES
Asian market opportunities
1989 PC purchasing plans
Asian PC device market opportunities
periQgSIMG IQP»BeTAT|
ASIAN MARKET OPPORTUNITIES
Not easy to sell total systems to the Asian market - Price - Native language application software Opportunities exist in providing key components to system vendors - Memories - ASICs - Microprocessors - RISC and CISC - Chip sets
SouicerERSO
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
|g8710aC.IMG laaWMTATI
WHAT PERCENTAGE OF PCs TO BE PURCHASED IN THE NEXT 12 MONTHS
WILL BE THE FOLLOWING?
80386-based 80286-based 8088/8086-based 680XX-based Other
34.5% 47.9% 10.0% 2.8% 4.8%
SoiHoe: Mbquest
fe»7<<B7.l»<G laBWMTJin
ASIAN PC DEVICE MARKET OPPORTUNITIES
(Millions of U.S. Dollars)
1988 1991 CAGR
DRAMs Micros ASIC Standard Logic Chip Sets
Total
$ 850 460 300 70 90
$1,770
$1,320 530 590 50
440
$2,930
15.8% 4.8%
25.3% (10.6%) 69.7%
18.3% Souice: Dataquest
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292
ppioeeiUG iiygWM?fAT]
DATAQUEST CONCLUSIONS:
• The IBM-compatible market is still strong
• End users are moving to 80286- and 80386-based systems
• The dealer channel is still king
• MCA: The Missouri Syndrome
• Will Compaq drive the industry?
• Asia will produce 26% of all PCs worldwide by 1991
© 1988 Dataquest Incorporated November 7 — Reproduction Prohibited
Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292