In 2010, China Will Excel Korea in the Parts Competitiveness

Analysis shows that China will excel Korea in the car parts competitiveness and will be equal to Korea in a field of production technology of non-memory semiconductor in 2010.

According to ‘Comparison of competitiveness in the industry of motorcar and semiconductors for Korea, Japan and China’ reported by Korea Institute for Industrial Economics and Trade (KIET) on June 18, it is forecasted that Korea is 92.5 and China is 93.3 when Japan is 100 in the comprehensive competitiveness of motorcar parts in 2010.

In a design and production technology of motorcar parts, Korea has still leaded, but China will excel Korea in the overall competitiveness with the price competitiveness using a cheap labor.

KIET forecasted that China will have the low competitiveness of the design, new technology application, new products development and production in the field of memory semiconductor even after 2010, but Korea will be equal to Korea in the production technology of non-memory semiconductor in 2010.

Sa Gong-mok, the assistant researcher said “China will narrow the gap by absorbing the advanced technology through leading the international advanced semiconductor companies to China market based on enormous potentiality of the china market.

KIET forecasted that the motorcar design and production technology of Korea will reach to 95.0% and 98.8% of Korea respectively, and so there will be no gap between Korea and Japan. Especially, the production technology of motorcar parts will be equal to one of Japan”.

On the other hand, there will be the big gap between Korea and Japan in the memory semiconductor.

It is forecasted that the Korea will reach just to 60∼70% of Japan in the field of non-memory semiconductor in 2010, but China will equal to Japan in the production technology of memory semiconductor and will reach to 80% of Japan the same as Korea in the production technology of non-memory semiconductor.

Ja-Ryong Koo bonhong@donga.com