Although Korean has achieved considerable success in developing the semiconductor industry, it faces a number of difficult challenges:
1. Korean semiconductor firms have a poor track record with diversification into non-memory. Korean semiconductor firms need to move beyond memory into other chip markets such as specialty logic chips...
2. Lacking design expertise, Korean semiconductor firms have paid lumpy royalties...
3. The major semiconductor equipments have been imported from the United States or Japan. Moreover, Korea remains weak in materials technology...
4. The Korean semiconductor industry has been dominated by chaebol semiconductor firms that have utilized their capital, economies of scale and production facilities...
5. The locus of strategic direction and R&D orientation for the future of the Korean semiconductor industry seem to reside in Korean semiconductor firms, not in the Korean government...
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