The Korea Times close
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Business
  • Tech
  • Bio
  • Companies
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
Entertainment
& Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
Sports
World
  • SCMP
  • Asia
Video
  • Culture
  • People
  • News
Photos
  • Photo News
  • Darkroom
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Mon, July 4, 2022 | 14:47
Business
Samsung goes all out to catch up in car semiconductors
Posted : 2015-12-23 15:59
Updated : 2015-12-23 15:59
Print Preview
Font Size Up
Font Size Down
By Choi Sung-jin

Most industrial experts agree Samsung Electronics is two or three years ahead of its competitors in memory chip technology. In automotive semiconductors, however, Samsung lags more than two years behind its rivals in Europe, Japan and the United States.

This means the world's largest maker of computer chips and smartphones faces an uphill struggle when it jumps into the electronic equipment market for cars next year, experts here say. And at the center of the battle is how Samsung will be able to repeat what it has done in memory chips in its new business of supplying electronic equipment to cars.

An ordinary gasoline car has 200-300 semiconductors, on average, but electric and other smart cars require more than 2,000 semiconductors worth up to 700,000 won ($597), compared with 300,000-400,000 won for gas-fueled cars. The automotive semiconductor market is also estimated to grow from 33.63 trillion won in 2014 to 48.38 trillion won in 2021. "The DRAM market is to enter into a down cycle next year but car chips will grow steeply," an analyst said.

About 80 percent of the top 25 makers are companies based in Europe, the U.S. and Japan, mostly specialized manufacturers that have been in the business for 20 to 30 years. According to the Korea Evaluation Institute of Industrial Technology, if Europe's technological level is 100, those of the U.S. and Japan are 98.9 and 93.8 but that of Korea is only 70.5, lagging 2.1 years behind Europe.

Entry barriers are also high, forcing newcomers to undergo tough quality certification and a long development period, as the parts' quality is directly related to consumers' lives. Would-be market entrants may also find it hard to break the existing ties between automakers and parts suppliers.

Samsung may be able to find hope in rapidly changing industrial trends, however. "So far, automotive semiconductors have been largely for mechanical controls but the focus of the market will shift to electronic equipment in five or 10 years," said Professor Lee Myung-hee of UNIST. "Not only will Samsung's competitive edge in semiconductors be its big asset but also the company can always take over a specialized maker to enter the market smoothly."

Emailchoisj@ktimes.com Article ListMore articles by this reporter
 
LG
  • Declining approval rating feared to dampen Yoon's political drive
  • Korea's bio industry at turning point after pandemic
  • Can Chinese demand cushion blow of US recession on Asian economies?
  • Concerns grow over COVID-19 resurgence
  • More than six out of 10 South Koreans willing to fight for country
  • Not just another crypto-bubble
  • Umbrella union stages massive rallies in Seoul amid scorching heat
  • Inflation expected to accelerate further in 2nd half
  • Japanese media focuses on Yoon's 'sales diplomacy'
  • Korea loses money in trade with China
  • Cha Eun-woo eyes starring role in 'K-Pop: Lost in America' Cha Eun-woo eyes starring role in 'K-Pop: Lost in America'
  • BTS' J-Hope tops iTunes charts in 84 countries BTS' J-Hope tops iTunes charts in 84 countries
  • Moon Geun-young to make directorial film debut at BIFAN Moon Geun-young to make directorial film debut at BIFAN
  • Lee Jung-hyun returns to big screen after childbirth Lee Jung-hyun returns to big screen after childbirth
  • BLACKPINK's 'Ddu-du Ddu-du' sets YouTube views record for K-pop group BLACKPINK's 'Ddu-du Ddu-du' sets YouTube views record for K-pop group
DARKROOM
  • Afghanistan earthquake killed more than 1,000

    Afghanistan earthquake killed more than 1,000

  • Divided America reacts to overturn of Roe vs. Wade

    Divided America reacts to overturn of Roe vs. Wade

  • Namaste: Yogis to celebrate International Yoga Day

    Namaste: Yogis to celebrate International Yoga Day

  • Poor hit harder by economic crisis

    Poor hit harder by economic crisis

  • Roland Garros 2022

    Roland Garros 2022

The Korea Times
CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Location
  • Media Kit
  • Contact Us
  • Products & Service
  • Subscribe
  • E-paper
  • Mobile Service
  • RSS Service
  • Content Sales
  • Policy
  • Privacy Statement
  • Terms of Service
  • 고충처리인
  • Youth Protection Policy
  • Code of Ethics
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group