Success Factors in the Korean Semiconductor Industry

The following key success factors in the Korean semiconductor industry can be identified:

1. Despite these obstacles and grim prospect for the semiconductor industry, Korean chaebol semiconductor firms decided to make big bet on semiconductors and entered the semiconductor business. This was possible due to Korean style corporate governance and investment decision making...

2. In a way, the prosperity of DRAM reflects the Korean development model characterized by the chaebol system...

3. Korean semiconductor firms have successfully pursued catch-up strategy by turning disadvantages of latecomers into advantages...

4. Since DRAMs with commodity-like features do not require sophisticated design technology like non-memory chips, it was proper decision for Korean semiconductor firms to enter the semiconductor business with DRAMs...

5. Transferring the technology and developing the production skills in the early entry into the semiconductor business was not easy. However, during the relatively short history, the Korean semiconductor firms achieved rapid technological development in high-tech manufacturing and design technology, especially in the memory product field...

6. Korean firms have employed appropriate modes of technology transfer ranging from licensing and OEM partnership to reverse brain drain and strategic alliance...

7. Korean semiconductor firms have pioneered new approaches to the memory products...

8. Korean semiconductor firms have built diversity into product lines...

9. The Korean government played somewhat limited but supportive roles in the development of the semiconductor industry...

Note: A detailed analysis on this topic won’t be shared due to the proprietary nature of the content.