The Korean Electronics Industry

Since the Korean War, Korea has made substantial gains in building a modern economy and society. One area where the results of four decades of work is especially apparent is in the country's electronics industry. Today, Korean electronics companies own a significant share of the world electronics market. They conduct state-of-the-art research and development projects, establish foreign ventures, and support universities and research institutes devoted to producing the country's future engineers, scientists, and technical leaders.

Under the direction of the U.S. World Technology Evaluation Center (WTEC), a panel of electronics experts with diverse backgrounds were selected to evaluate the multiple facets of electronics in Korea. As a result of WTEC organization, the panel visited various companies, institutions, and government agencies in Korea. This study aimed at publicizing only information that our hosts in Korea were willing to place in the public domain. In order to make perfectly certain that nothing confidential was published, each host was given the opportunity to review a draft of the report before it was published. This allowed them to delete sensitive material and/or correct errors. We did not look at North Korea, so any reference to Korea will mean exclusively The Republic of Korea (i.e. South Korea). Nevertheless, it is interesting to note that the whole time the panel was in South Korea, hardly a day went by when North Korea was not mentioned in the news, generally in terms of a strengthening military position along the border. The population lives with a constant threat of attack but appears not to take these threats seriously. In fact, those Koreans we met with commonly believed that they will be reunited with the North by the turn of the century. Nonetheless, the threat of aggression form the North looms as a constant reminder that this is not a nation at peace with all its neighbors.

This book documents the technologies, manufacturing procedures, capabilities, and infrastructure that have made Korea so successful in the electronics industry. This knowledge, coupled with understanding of the future direction of the Korean electronics industry, is vital for U.S. competitiveness. Such information is needed to determine in which market sectors to compete and in which areas subcontracting, outsourcing, and partnership agreements would be beneficial. 
 
 

The Singapore and Malaysia Electronics Industry

Since Singapore was separated from the Malaysian Confederation in 1965 and Malaysia underwent political unrest in the late 1960s, both countries have made remarkable progress towards modernization. The new focus has been on developing an industrial, export-oriented economic base, a major portion of which is focused on the electronics industry. Today, Singapore and Malaysia own a significant share of the world's electronics market, conduct state-of-the-art research and development projects, establish foreign ventures, and support universities and research institutes devoted to producing the countries’ future engineers, scientists, and technical leaders.

This book documents the technologies, manufacturing procedures, capabilities, and infrastructure that have enabled these countries to be so successful. This knowledge, coupled with knowledge of the planned future directions of Singapore and Malaysia's electronics industries, is vital for determining an appropriate competitive response for the U.S. An understanding of the present and future of Singapore and Malaysia's electronics industries is needed in order to determine in which market sectors to compete and in which areas subcontracting, outsourcing, partnership agreements, and foreign direct investment would be beneficial.

The electronics industries of both Singapore and Malaysia are described in this one book rather than in separate books because of the strong relationship between the two countries. Both countries are active members of the Association of Southeast Asian Nations (ASEAN). Water and other natural resources are carefully traded, as are human resources. For example, in 1995, Singapore employed 450,000 Malaysians. The two countries have also undertaken joint development projects that have affected their industrial and electronics development. Because of Singapore's acute labor shortage, Malaysia's educational and developmental needs, and the desire of Singapore to create a geographically-based development zone, these economic interactions are likely to accelerate.

The Taiwan Electronics Industry

In the early 1970s, electronics was targeted by the government and people of Taiwan as a strategic technology and was heavily promoted through various policies.  Since then, Taiwan's electronics industry has achieved outstanding success. At present, the electronics industry, especially the semiconductor and the information products sectors, is characterized by rapid growth and continued high potential.

This book investigates the past performance, current status, and future development of Taiwan's electronics industry. The information is based on the authors first-hand assessment of over 100 electronics companies in Taiwan, academic studies of Taiwan's electronics, computers, and semiconductor industries, and Chinese language sources including information obtained from Taiwan's Ministry of Economic Affairs, Institute of Industrial Technology Research, and Institute for the Information Industry.

This book is for readers interested in the historical development, current status, and future growth of Taiwan's electronics industry. Researchers and policy makers who need to know more about the role of central government in promoting "strategic" industries and in assisting national science and technology development in an Asian Newly Industrialized Country will find this book useful. This book also provides engineers with information about the current and potential capabilities of Taiwan's electronics technology. In addition, this book provides corporate business planners and managers in the electronics and other industries the information needed to comprehend the industry structure, general strategies, specific product market focus, and current performance of Taiwan's dynamic electronics industry. This information will be helpful for making decisions to form joint ventures and strategic alliances with Taiwanese manufacturers. Data about specific information products, communication products and electronics companies can be found in the Appendixes.

The Chinese Electronics Industry

Since the open-door policy began in 1979, China has boasted one of the fastest growth economies in the world and one of the largest future markets. by the end of 1998, China had accumulated over US $144 billion of foreign exchange reserve, second only to Japan.

Although economic liberalization swept across all the sectors of the industrial economy, electronics and information technology have been targeted in particular for growth through export. In addition to simplifying the licensing and foreign investment policies, the government targeted technologies such as electronics for major development programs. Well-funded programs such as the "Torch Program" and the Economic & Technological Development Zones are functioning as national centers of excellence at the forefront of the electronics technology revolution. Recently, the Chinese central government is encouraging foreign investment in the so-called "pillar industry," which includes the electronics industry, to serve as a multiplier for national economic development and to modernize industry structure. Massive incentives are provided for electronics development projects and customs duties have been reduced on all electronics equipment since 1996. As a result, total value of industrial output reached US $37 billion and total electronics export value achieved US $19 billion in 1996. The estimated output value of China's electronics industry will be over US $120 billion by the year 2000 [China Electronics Industry Yearbook 1997]. The rapid economic growth, large volume of foreign trade, bold reform measures, and massive infrastructure strategy also point to an enormous market potential and a valuable global partner.

This book documents the technologies, manufacturing procedures, capabilities, and infrastructure that have made China a major player in the Asian electronics industry. This book covers the major segments of the industry: semiconductors, packaging, printed circuit boards, computer hardware and software, telecommunications, and electronic systems. Other topics include the role of government, various associations, research organizations, educational institutions, and major electronics companies. In addition, this study examines the roles that government, associations, research organizations, educational institutions, science and technology information networks, and major companies have played in establishing an infrastructure where the industry can flourish.

This book is intended for readers interested in the historical development, current status, and future growth of China's electronics industry. Engineers, corporate planners, business managers, technologists, and policymakers in the electronics industry will find this book useful in assisting them to:

• comprehend the historical development, current status, and future growth of China's electronics industry
• understand the cultural, economic, and technological factors that drive and inhibit market access and success in China
• make decisions on strategic issues such as market entry, establishing joint ventures or strategic alliances with Chinese electronics companies in order to access the world's largest emerging market
• formulate strategy to cooperate and compete in the global electronics industry

Electronics Industry of Japan

The growth of the Japanese electronics industry in the increasingly integrated world economy has been driven by a combination of market forces and the unique characteristics of the Japanese social organization and people. The Japanese electronics industry, as an industrial phenomenon, has received considerable attention from researchers in various fields: economists, technology watchers, historians, market researchers, journalists, and government-sponsored study teams. Broadly categorized in the light of their foci, the existing literature about the Japanese electronics industry falls into two groups. The studies in one category are the analyses of the historical development of the electronics industry in Japan. The purpose of such studies is to find out the secret of the enormous commercial success achieved by the industry. The other type consists mainly of reports published in the United States, which focus on the issue of America's competitiveness in the face of challenges from Japanese technology.

The electronics industry is now a leading component of the Japanese industrial infrastructure, and thus an indispensable topic in the study of Japanese industry and companies. Moreover, the electronics industry is rooted in Japanese society, so that it is often discussed in studies of Japanese society and culture. When the information dispersed in published books and papers about Japan, her industries and her electronics industry are combined, the available knowledge about the subject is voluminous. Why another book on the Japanese electronics industry?

For one reason, the rapid pace of technological development and the concomitant change in the industrial landscape require frequent updating of the relevant information. For another, the study of such a complex subject demands multiple viewpoints because it has to deal with technical, social, and cultural matters. Because of the social and cultural implications, no study can be free from bias implanted in investigators cultivated by their own upbringing and current environment. Most of these books and study reports available to readers in the West were written by experts who stayed in or visited Japan, interviewed key players of the industry, and studied government and corporate statistics. Those who became acquainted with corporate gurus tend to praise the achievements of the Japanese electronics industry. If the investigator is sent from a foreign company in danger of extinction in this highly competitive market, his or her report could be critical of Japanese practices.