A Study on Current Status and Marketing Strategy for Semiconductor Industry in Korea

Park, Heung Sik(Major in Marketing Management Administration Han Yang University.)

This point in time may just as well be referred to as an era of scientific-technological revolution. This phenomenon could be attributable to repercussions brought about by the rapidly developing semiconductor industry following the invention in 1974 of transistors by Bell Laboratory.

Although it is quite true that history of semiconductors runs as short a time span as 40 some years, not only the semiconductors industry itself marked a great stride but also resulted in applications in industries almost as a whole including the industries of electronics, communications, aerospace, chemical, information and military hardware and the like. This has contributed to an enormous development of the industry for automation of a wide range of equipment, multi-functions, sophistication, higher reliability, compactness and lightweight.

Particularly, with the innovation of microelectronics technologies that constitute the very basis for semiconductor technologies, today's world finds itself at the threshold of ushering in an information age.

Accordingly, this study, with perception and analysis of myriad of environments the semiconductor industry is faced with, namely factors causing changes in the structures of worldwide demand and supply of semiconductors, technological trends, support measures and marketing strategy of major corporates, is intended to search for a direction to secure relative superiority of the domestic industry by the same token, an equal emphasis was place on mapping out marketing strategy aimed at enhancing competitiveness of the semiconductor industry through analysis of the domestic semiconductor industry.

This study is comprising six(6) sections.

In section one(1), the purpose of the study, method and scope are described, and definition of semiconductors, the characteristics of the industry, types of semiconductors and application field areillustrated in section two(2), an overview of the semiconductor industry. In section three(3), analysis of world-wide demand and supply situation is presented in parallel with comparative analysis for technological trends, support measure provided for the industry by major states and marketing strategy of major corporates, with a view to arriving at suggestive lessons and incidences. With a view to arriving at suggestive lessons and incidences. With analysis of status covering demand and supply of domestic semiconductor industry and technological level, strategy for promoting technology that the domestic industry is in need of pursuit, coupled with supportive measures to be rendered to that end are described in section four(4).

In section five(5), through analysis indicated as above marketing strategy is proposed centered around modus operandi to strengthen competitiveness of the domestic semiconductor industry and the so-called marketing "mix". Both a summary and conclusion constitute section six(6), and in this section, a proposal has been presented for measures deemed necessary viewed from the aspect of marketing strategy to achieve sustained high growth with stability of the semiconductor industry in Korea and develop further the industry to a strategic one that may lead to playing the leading role in export performance.

First, it is desirable to establish product strategy with an depth analysis of factors affecting changes in international environment, life cycle of products and prevailing trends in the industry.

Secondly, it appears imperative to implement strategic policy measures for pricing in order to maximize profit, with perception of competitor's move, market trends and the build-up of an early information processing system for semiconductor demands.

Thirdly, in order to boost export and expand magnitude of inroads into overseas markets, if would be desirable to expert efforts at improving distribution structure by enlarging over-seas sales volumes and maintaining cohesive relationship with distributors in given areas through establishment of a corporate body for sales.

Fourthly, positive sales promotion will be launched with the fostering of experts.