KOREAN ELECTRONIC INDUSTRY

ED RESEARCH Co. Ltd

JEWON LEE / Senior Researcher

ED Research Co. Ltd

Contents

1. Outline of Korean Electronic Industry

2. Display

3. Communication Equipment

4. Semiconductor

6. Research areas of ETRI & KAIST

5. Robot

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Outlook on the Production

(KRW 1 Billion)

(≒ 0.65 Million Euro) 2008 2009 2010

Home Appliance 31,625 28,160 28,740

Information Communication

Equipment 76,020 69,803 74,790

Display 36,400 37,618 41,849

Semiconductor 35,421 41,380 43,870

Electronics Industry is the largest export industry of Korea

30% of total export -> Main engine for Korea Inc.

After the global economic recession, Korean electronics industry has entered a recovery phase since 2009

IT industry(i.e. Display and Semiconductor) is the driving force behind the production growth

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Main Players’ Issue

Samsung

Current :

Market Leader in global flat-screen TVs, DRAM memory

Smartphone (Galaxy S)

Focus :

Television with Internet-accessibility and 3D experience - Market shares(2011, 1Q) : 48.8%(North America), 50%(Europe)

Upgrade performance of Smartphone and Tablet PC - 14.4% Market shares(Smartphone, estimated in 2011)

LG Electronics

Current : Similar product spectrum to Samsung, but having a difficulty in profit last year(2010)

Focus :

3D TVs with film-type patterned retarder(FPR) technology

Increase Smartphone(Optimus) market share about 5%

Tablet PC

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Display(1) overview

Korea is the world’s largest producer of Flat Panel Displays(FPD)

Main players are Samsung electronics & LG Display

Trends in Market Share of LCD Panels

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Display(2) Strengths

The world top-tier mass-production technology for panels

Win-win competition between the world’s 1st and 2nd ranked

firms

Leadership of the global market in terms of products and

technology(ability to invest preemptively on a large scale)

Accumulated development capability for next-generation

displays

Leadership of the front-end TV industry

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Display(3) Competition Status

Rates of Localization and Competitiveness of Major Parts of LCD panel

Competitiveness level : • > ◎ > △

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Display(4) Development Direction

TFT-LCD

Industry

Innovation of Technology - AMOLED

- Flexible LCD

- 3D Display

Changes in shape and scope - Commercialization of large size

- Growth of DID maker

Secondary development - Solar cell

- X-ray detector

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Communication Equipment(1) Overview

Since the mid-2000s, Korea has been taking the leadership in the global next generation mobile communication industry First development in the world : WiBro(Mobile WiMAX), HSDPA service,

LTE(Long Term Evolution) handset modem chips

Production

Trend

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Communication Equipment(2) Global Position

Rankings of Country in the Global Wireless Communication Apparatus Market by Production output

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Communication Equipment(3) Ten Major Manufacturers(2009)

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Communication Equipment(4) Growth Direction

Korea became the world’s first nation to commercialize the WiBro service

in 2006, and the world’s sixth to obtain the 3G global standard, and

completed nationwide installation of the HSDPA network in 2007

WiBro service adopted by 159 wireless carriers in 76 countries(Asia

and South America)

2008, Korean manufacturer succeeded in developing LTE chips(first time)

2009, Increasing demand for smart phones led to improve the

processing capacity and transmission speed of communication services

From 2011, 4G LTE network investment are performing to meet the

market demand

At least KRW 5 trillion for five years

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Semiconductor(1) Overview

Statistics

Strengths

Global leadership in the memory semiconductor sector

The world’s best production cost competitiveness

World-class semiconductor applications industries including

Samsung Electronics, LG Electronics and Hyundai Motors

The government’s solid support for the semiconductor industry

Secured new technologies as 3G mobile communication, IPTV,

DMB, and 4G

Exports (2009)

Imports (2009)

Production (2008)

No. of Employees (2008)

US $ 31 Billion (8.5% of total exports)

US $ 26.2 Billion (8.2% of total imports)

KRW 36 Trillion (3.2% of all

manufacturing industry)

92,000 (3.7% of all

manufacturing industry)

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Semiconductor(2) Industry Structure

Korean semiconductor industry consists of roughly 370 companies

Dividing 3 groups

Device manufacturer(memory, system semiconductors, discrete device)

Fabless and foundry companies

Equipment and materials manufacturers

150 fabless companies, notably Mteckvision and Corelogic, are currently

operating amid an industry experiencing growth each year

Multi-media processors(Corelogic), LCD TV driver ICs(TLI, Tomato LSI),

ground-wave DMB chips(Telechips)

Domestic foundry industry

Main players : Dongbu Hitek, MegnaChip Semiconductor

Domestic Packaging industry

Dominated by foreign companies : Amkor, Stats, ChipPac, ASE

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Semiconductor(3) Market Share

Korea has 11.3%(2009) of Global market share

When it comes to the company(2009),

Samsung is in the second place(7.6%) after Intel(14.1%)

For DRAM and NAND Flash global market, Samsung is the number

one company(32.1% and 37.7%, respectively) in the world

Hynix positioned on second place(20.7%) for DRAM global market,

and third place(9.2%) for NAND Flash global market

For DRAM market share, recently reported(2010, 4Q) that

Samsung takes 42.1%

Hynix takes 22.2%

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Semiconductor(4) Technology Innovation

Domestic flash memory makers have succeeded in producing

20nm-class flash memories(the highest leading-edge processing

technology up to date) in 2010

Widening the technology gap with rivals in terms of refinement and

nano processing technology

Samsung Electronics and Hynix may say that they are ahead one

and a half years then their rivals

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Robotics(1) Korean Market

Outlook on the production of Korea’s Robotic market

(Unit : Million Euro) 2006 2007 2008 2009 Average

increasing(%)

Industrial 403 412 451 535 10.1

Service 28 28 31 48 21.2

Professional 7 5 7 9 10.9

Personal 20 22 23 38 26.0

Parts/Components 30 44 49 72 34.2

Total 463 485 532 656 12.6

Industrial;

95

Professional

service; 32

Personal

service; 48

parts /

components; 85

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Robotics(2) Company and Product

Total 260 Robotics companies are in Korea(2009)

Main products

Industrial : components handling robot for automobile or electronics,

test robot

Service : Surveillance, agriculture, cleaning, education

Parts & Components : Moving components, motor, driver, proximity

sensors

IT convergence

RFID/USN, Robot/cognition system, Green computing, BT convergence, Vehicle-

IT convergence, Postal & Logistics

Software

Embedded software, Speech/language information, Cloud computing, Next

generation computing, Knowledge-based information security & safety

Convergence components & Material

NT convergence components, New devices & Materials, Photonic/Wireless

convergence components, System-on-chip, Advanced solar technology

Broadcasting & Telecommunication

IPTV, 3D TV system, Satellite & Wireless convergence, radio

Internet

4G, future network system, optical internet

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Research areas of ETRI

Innovative technology for secondary battery

anti-reflective OLED

Transparent CNT Electrode

CNT alignment

IPTV service provide technology

Face and facial feature detection technology

Scheduled power-saving method in IEEE 802.16e system

War-game modeling and developing the simulator method

Improvement of configuration management process

Monitoring the indoor location based on open radio map

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Research area of KAIST

Welcome to KOREA !