“It’s Time for Semi-manufactured Goods”

Domestic electronics industry has strengthened a technology of semi-manufactured goods.

Owing to spreading recognition that the companies with core parts competitiveness will survive for 21st century, the electronics industry has concentrated on acquiring the technology of semi-manufactured goods.

The main semi-manufactured goods of Samsung Electronics are the optical pickup devices. DVD player needs two Laser Diodes (LD) to read data information of DVD and CD of different wavelength. Samsung Electronics made 1 LD read two wavelengths.

Gim Yeong-Han, senior researcher of Samsung Electronics said “As the parts decrease in number, a percentage of poor-quality decreases and a price competitiveness arises. Owing to this competitiveness, the ordering of Original Equipment Manufacturing (OEM) has increased.”

Samsung Techwin which manufactures cameras, has focused on the competitiveness of the parts like Cannon or Sony Japan. The analysis showed that at one time, MINOLTA Japan was in difficulties because it manufactured only finished goods.

Son Yeong-Tek, the leader of Optical Digital Team, Samsung Techwin said “The main semi-manufactured goods are lens(Viewpack) for mobile phone camera. We have manufactured a high-volume production two months before and so we expect that the goods will be sold to the mobile phone manufacturers for KRW 50 billion ~ 100 billion per month.” The company has been manufacturing the optical engine module for projector since July.

In the executive meeting held in April, Lee Kun-Hee, the chairman of Samsung Group indicated that each affiliate must obtain the core parts technology to become the world class company, while promoting the business restructuring of the electronics affiliates.

LG Electronics also has good news because the Federal Communications Commission of US (FCC) adjusted to manufacture the digital TV which attaches the digital tuner to all TV receivers. The source technology of digital tuner is possessed by Zenith US affiliate of LG Electronics. Accordingly, the royalty revenue of one year is estimated at KRW 0.1 billion.

When a compressor for Household Refrigerator (Linear Compressor) which was developed by LG Electronics in 2002 is used to 680ℓ refrigerator, the monthly power consumed decreases to half the costs. LG expects that this parts technology will be an essence of the refrigerator competitiveness for future.

In addition, Samsung Electronics, LG Phillips LCD developed a color filter which makes the color of TFT-LCD, and so has taken a substitution effect on export.

Im-Sook Ha artemes@donga.com