Korea's Electronics Industry

-2004 Edition-

Soon-Bok Lee
Mikyoung Lee
Michael Pecht

CALCE EPSC Press
University of Maryland
College Park, Maryland

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Library of Congress Control Number: 2003107562

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PREFACE

Since the 1970s, the Korean electronics industry has undergone a remarkably consistent and rapid expansion in terms of size and capacity, technological expertise and sophistication, income earned, and impact on the world market. As the profits in DRAM manufacturing diminished and the Asian economic crisis starting in 1997 affected Korean currency stability, Korean semiconductor companies began to shift strategies. Efforts to reduce competition and increase cooperation among Korean and international chipmakers have also begun to bear fruit.

At the same time, the prices of major exported electronics products and systems had to be reduced dramatically due to the drop in Korean currency value and in the customer confidence index during the economic crisis. Exports of electronics products dropped from an 11.1 percent average annual percentage rate during 1990 to 1997 to 6.7 percent in 1998 for the first time in history. Recovery started with tremendous efforts to restructure the financial system and business framework. In spite of all its challenges, today Korea is a top electronics manufacturer and expects even greater success. The Korean electronics industry is well known worldwide and expects even greater success.

This book discusses several new strategies and timely issues, in addition to the extensive material that appeared in the 1999 edition. It also documents the technologies, manufacturing procedures, capabilities, and infrastructure that have made Korea so successful in the electronics industry. This information, coupled with an understanding of the future direction of Korean electronics, can help pinpoint profitable market sectors to compete in and areas that might produce beneficial subcontracting, outsourcing, and partnership agreements. Further, since the world market and the Korean economy have experienced significant changes and the new Korean government confronts substantial challenges, it is useful now to review the status, capabilities, and plans of the major Korean electronics companies.

Chapter 1 of the 2004 edition of the Korea¡¯s Electronics Industry includes an overview of Korean electronics businesses and industries, governmental policy in science and technology, and academic and institutional involvement. Chapter 2 shows science and technology in Korea during the last 50 years. Chapter 3 begins with a general overview of the Korean industry, including information about the electronics industry, the role of government and universities in science and technology, and the interactions between industry, government, and the universities. Chapter 3 discusses the development of the Korean electronics industry. Chapter 4 focuses on the Korean semiconductor industry; its main products, process technology, strengths, and strategy for competitiveness as well as the role of the KSIA (Korean Semiconductor Industry Association) as a coordinator. Chapter 5 describes packaging and assembly industry in Korea. Chapter 6 is dedicated to the Korean display industry, its major companies and significant developments, government planning and support, and the prospect of flat panel display application. Display products such as LCDs (liquid crystal displays) and CRTs (cathode ray tubes) play a major role in Korean exporting and represent the world¡¯s top manufacturing capability. Chapter 7 covers major electronics products and systems for IT services. Governmental prospects in information technology and e-business as well as corporate-level efforts in telecommunications are also included. Chapter 8 introduces key Korean electronics companies based on their products, efforts in research and development, strengths and strategy for growth, and position in the world market. Chapter 9 provides information on key institutes and universities that support the Korean electronics industry.

Who This Book Is for

This book is for professionals in business and management, engineering, academic and governmental institutes, and foreign investment who are interested in gaining information about Korean industry, especially the electronics industry.

Authors and Acknowledgements

Under the direction of the US World Technology Evaluation Center (WTEC), a panel of electronics experts with diverse backgrounds was selected to evaluate the multiple facets of electronics in Korea. The panel visited various companies, institutions, and government agencies in Korea during the early 1990s. Under the leadership of Michael Pecht (Panel Chair), The Korean Electronics Industry was published in 1997. A few years later, Soon-Bok Lee, who had been on sabbatical at the CALCE Electronic Products and Systems Center at the University of Maryland, initiated the writing of the next edition. In December of 2003, the latest version, a 2004 edition, of the book was published.

Soon-Bok Lee is a Professor in the Mechanical Engineering Department of the Korea Advanced Institute of Science and Technology (KAIST) and has served as the Dean of Student Affairs of KAIST. He earned his Ph.D. in mechanical engineering from Stanford University. He is the Director of CARE (Computer Aided Reliability Evaluation) for electronics packaging, one of the Korean national research laboratories. He is actively involved in the Korean national reliability counsel for parts and materials in Ministry of Commerce, Industry and Energy (MOCIE). He has organized the 3rd International Symposium on Electronics Materials and Packaging 2001 (EMAP2001) as a general chairman of the conference. He has also served as an editor of the KSME Journal, and as a Directorial Board Member of KSME. He is a member of KSME, ASME, IEEE, and SEM.

Mikyoung Lee is an associate research scientist at the CALCE Electronic Products and Systems Center (EPSC) at the University of Maryland. She earned her M.S. degree in heat transfer and applied mathematics, and a Ph.D. in mechanical engineering from Michigan State University. She worked as a team manager of reliability engineering in LG Electronics before joining the CALCE. Her major research interests include product quality and reliability in digital display panels, such as plasma and liquid crystal display panels.

Michael Pecht has a B.S. degree in acoustics, an M.S. in electrical engineering and an M.S. and Ph.D. in engineering mechanics from the University of Wisconsin at Madison. He is a Professional Engineer, an IEEE Fellow, an ASME Fellow, and a Westinghouse Fellow. He has received the 3M Research Award, the IEEE Undergraduate Teaching Award, the IMAPS William D. Ashman Memorial Achievement Award for his contributions. He has written sixteen books on electronic products development. He served as chief editor of the IEEE Transactions on Reliability for eight years and on the advisory board of IEEE Spectrum. He is the founder and the Director of the CALCE Electronic Products and Systems Center at the University of Maryland and a Chair Professor. He is chief editor for Microelectronics Reliability and an associate editor for the IEEE Transactions on Components and Packaging Technology. He has consulted for over 50 major international electronics companies, providing expertise in strategic planning, design, test, IP and risk assessment of electronic products and systems.

The authors are deeply indebted to the many people who contributed to this book especially to Roy Montgomery and Moo-Young Han. Tae-Sang Park, a Ph.D. student in the Mechanical Engineering Department of KAIST, Yuchul Hwang, a Ph.D. candidate in the Mechanical Engineering Department of the University of Maryland and Miran Kim, a staff member at the CARE laboratory, researched and collected valuable information to help in this project. We are particularly grateful to E. J. Jun, former Director General of the Ministry of Science and Technology of Korea, for sharing government policy on the Korean electronics industry. We extend our sincere appreciation for reviewing and updating the information to Moon-Sik Bae of ETRI; Insoo Kim, Director of KIST; Byung-Nam Baek, Director of Planning of KETI; Kiman Lee of KSIA, Sungjoo Chang of EDIRAK; Hyunsook Min of the International Relations Office of KAIST; Chiha Kim, Dean of Planning at POSTECH and Seung-Ku Kang of SNU.

The authors thank Korean electronics companies for sharing information about their respective organizations and helping to update the book. Special thanks are extended to Youm Huh, the Executive Vice President of the Hyundai Electronics Industry, Chongkuk Suh of Samsung Electronics Co., Ikhm Kim of Cheil Industry, Sungki Chang of Youngsan University, Byung-Ryul Min, Vice President of Samsung Electro-Mechanics, Inc., and Young-Whan Lee, Director of LG Electronics.

Table of Contents

  1. General Information
  2. Science and Technology in Korea
  3. Development of the Korean Electronics Industry
  4. The Korean Semiconductor Industry
  5. Packaging and Assembly Industry
  6. The Korean Display Industry
  7. Products and Systems for IT Services
  8. Key Korean Electronics Companies
  9. Key Institutes and Universities Supporting Electronics

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