Korean Semiconductor Industry Research Articles

The growth patterns of firms in the industrial value chain using the hidden markov model: Evidence from the Korean semiconductor industry

Having steadily grown over the last 40 years, the semiconductor industry in South Korea has emerged as one of the leading industries in the world. However, it has recently entered a period of great change because of the volatility in the global value chain caused by trade conflicts and protectionism in the pursuit of technological sovereignty by countries. To cope with these changes, the South Korean government has endeavoured to strengthen the competitiveness of domestic materials and equipment segments, which are the backbone of the semiconductor industry. Nevertheless, most previous studies on the semiconductor industry in South Korea focused on the downstream of the value chain (which means the manufacturing of finished components). However, only a few attempts were made to investigate the upstream part of the industry, that is, materials and equipment segments. Therefore, this study analyses the growth patterns of firms engaged in the Korean semiconductor industry value chain, including finished components, materials, and equipment. For this objective, we applied the Hidden Markov Model to time-series sales data collected from 1998 to 2019 for 1,259 firms in the value chain. The analysis results indicated that the growth of these firms could be modelled using six stages, based on which nine patterns of growth were identified. This study proposes a novel data-driven approach for tracking firm growth across the domestic industry value chain from a longitudinal perspective. Thus, we provide valuable policy insights for nurturing the domestic industry’s value chain.

A Study on Export Trade Efficiency and Potential of Korean Semiconductor Industry: Empirical Evidence from 72 Trade Export Countries

Purpose - The semiconductor industry is an integral part of the Korean economy. Trade competition in semiconductors, the core component of the fourth industrial revolution, has become increasingly fierce. In this context, this study aims to empirically analyze the current situation, international competitiveness, and challenges faced by Korea’s semiconductor export trade from the perspective of trade efficiency by using Korea’s semiconductor export trade data. Design/Methodology/Approach - Using a stochastic frontier gravity model, this study analyzes the data of 72 countries and regions that have been the main targets of Korea’s semiconductor exports for the past 22 years using an empirical approach to investigate the main factors affecting Korea’s semiconductor export trade, trade efficiency, and trade potential. Findings - From the division of semiconductor export market type, there are 13 saturated countries, and the trade volume accounts for 77.86% of the total trade volume of Korea’s semiconductor exports. There were 31, 16, and 12 expansion, development, and iceberg-type countries, respectively. In addition, the regression results show that Korea’s population size and the R&D expenditures of the countries with which it trades have a significantly positive effect on semiconductor exports. Research Implications - To date, no more systematic empirical research literature on the efficiency of Korean semiconductor export trade has been found, and this study fills the gap in the literature in this area through an empirical analysis approach. This study aims to provide a reference value in Korea’s semiconductor export trade.

Optimal Ventilation Design for Flammable Gas Leaking from Gas Box Used in Semiconductor Manufacturing: Case Study on Korean Semiconductor Industry

Highly flammable substances such as hydrogen and silane are used in the semiconductor manufacturing process. When gas leaks, it is mixed with outside air and connected to a treatment facility through the duct inside the gas box. This study investigated optimal exhaust design to prevent fire explosions and health problems by optimizing the exhaust volume when hydrogen leaks from the gas box of semiconductor manufacturing equipment. After selecting the leakage rate amount based on the KS C IEC 60079-10-1, SEMI S6-0707E, and SEMI F-15 standards, a gas box was manufactured. Subsequently, the fan speed required to ventilate the gas box more than five times per minute according to the SEMI standard and the opening area and location that can reduce the lower explosive limit (LEL) to less than 25% in the event of hydrogen leakage were determined. When the air intakes were placed on the left and right, the flow rate was measured at 32 L per minute (LPM), and the maximum concentration was measured at 9111 ppm. This is less than 25% of the LEL of hydrogen and is believed to be capable of preventing fire and explosion, even if a similarly flammable gas leaks inside the gas box.

The Effectiveness of Pressure Safety Valves in Chemical Supply Systems to Prevent Fire, Explosion, and Overpressure in the Korean Semiconductor Industry

This study was conducted to review the safety and appropriateness of PSV (Pressure Safety Valve) installation in the supply tank, which is a pressure vessel included in supply systems dedicated to supplying the acid/alkaline substances used in the Korean semiconductor manufacturing process. Three aspects of design, risk assessment, and regulations were reviewed to determine if there is a source of pressure higher than the maximum allowable working pressure (MAWP) of the supply tank that could cause fires, explosions, and overpressure. In the case of the design review, all 17 overpressure scenarios described in API Standard 521, i.e., pressure-relieving and depressuring systems, were reviewed, and there was no overpressure scenario above the maximum allowable working pressure (MAWP). Then, the risk assessment, i.e., the Hazard and Operability Study (HAZOP) technique, was used, and as a result of reviewing all possible risk situations, we can state that there were no overpressure scenarios that can exceed the design pressure of the supply tank; thus, we decided that the installation of a PSV on top of the supply tank is unnecessary. Finally, accident prevention measures against overpressure, such as the KS B 6750-3 system design and the Korean Industrial Standard, were reviewed from a legal point of view. It was confirmed that the hazardous chemical supply system for the semiconductor industry designed in this study has several protective functions to prevent fires, explosions, and overpressure. As a result of reviewing the above three aspects, it can be said that there is no need to install a pressure safety valve in a pressure vessel storing hazardous chemicals.

Text mining method to identify artificial intelligence technologies for the semiconductor industry in Korea

Semiconductors are among the most important core technologies contributing to the Fourth Industrial Revolution. The United States, Taiwan, and China have been investing heavily in semiconductor research and development. To achieve international competitiveness in the semiconductor industry, Korea needs to establish a research and development (R&D) roadmap for small- and medium-sized enterprises (SMEs). Our study identified trends in the semiconductor industry by analyzing the characteristics of core technologies based on patents that disclose technologies instead of holding exclusive ownership. Specifically, we analyzed registered patents concerned with artificial intelligence and machine learning pertaining to the semiconductor industry, which are attracting considerable attention. Using the Korea Intellectual Property Rights Information Service database, we identified 3569 patent specifications related to AI technology and the semiconductor industry. The text mining and network analysis results indicated that the application of deep neural networks is the most important and affects various aspects of R&D. Particularly, AI technology is actively studied for monitoring manufacturing and etch processes. Additionally, technology convergence among virtual reality, visualization, smart factories, and etching technology was identified. The analysis results identify promising technologies related to semiconductors and provide insights that would enable SMEs in the Korean semiconductor industry to establish a technology roadmap.

한국 반도체 소부장기업 CEO특성과 동적역량이 기업의 재무성과에 미치는 영향에 관한 연구

The Korean semiconductor industry has grown to become the world's second-largest semiconductor producer through remarkable growth over the past 40 years, and large semiconductor manufacturing companies and subsidiaries have played an important role in the success of the Korean semiconductor industry. In order for a company to survive and grow in the rapidly changing environment of the semiconductor industry, the capabilities of the CEO and the dynamic capabilities of the company are very important factors. Therefore, this study empirically analyzed how the CEO's characteristics affect sales performance through the mediating effect of the company's dynamic capabilities and the moderating effect of technology transfer, targeting semiconductor subsidiaries. Risk sensitivity among entrepreneurship of CEO's of semiconductor subsidiaries had a significant effect on adaptability and innovation capacity among dynamic capabilities of the company. Among the managerial competencies of CEO's of semiconductor subsidiaries, network and technical competencies had a significant effect on adaptability and absorption competencies. In addition, among the dynamic competencies of semiconductor sub-maintenance companies, the absorption capacity had a significant effect on financial performance, and the CEO's network capacity of semiconductor sub-maintenance companies had a significant effect on financial performance through the absorption capacity, which is the dynamic capacity of the company. Regarding the moderating effect of technology transfer, it was found that the CEO's technical ability had a significant effect on financial performance through innovation capability.

한국 반도체산업의 수출경쟁력에 관한 연구

The purpose of this study is to increase the demand for semiconductors due to the vulnerability of the division of labor caused by COVID-19 and the acceleration of digital transformation, major global countries are simultaneously strengthening their strategies to internalize the semiconductor supply chain. Changes in the global semiconductor industry can also predict a big impact on the Korean semiconductor industry. As a basic task to find ways to enhance Korea's export competitiveness in the future due to such global environmental changes, it is to analyze the export competitiveness of the Korean semiconductor industry in the global market and prepare a plan to enhance export competitiveness accordingly.
 In order to analyze the export competitiveness of the Korean semiconductor industry, based on UN comtrade statistical data of customs clearance data from 2011 to 2020, Global market share (IMS), trade specificity index (TSI), and current comparative advantage index (RCA) to improve the competitiveness of eight major countries in the global market by analyzing the MTI 6 unit 8 item group classification and the export competitiveness of the Korean semiconductor industry by HS 6 unit 18 item classification, in various ways, In the rapidly changing world market after the US-China trade war and Russia-Ukraine war, it was intended to contribute to the preparation of measures to enhance the competitiveness of the Korean semiconductor industry.

Analysis of Korean Import and Export in the Semiconductor Industry: A Global Supply Chain Perspective

Purpose – Semiconductors are a significant export item for Korea that is expected to continue to contribute significantly to the Korean economy in the future. Thus, the semiconductor industry is a critical component in the 4th Industrial Revolution and is expected to continue growing as the nonface-to-face economy expands as a result of the COVID-19 pandemic. In this context, this paper aims to empirically investigate how semiconductors are imported and exported in Korea from a global supply chain perspective by analysing import and export data at the micro-level. Design/methodology – This study conducts a multifaceted analysis of the global supply chain for semiconductors and related equipment in Korea by examining semiconductor imports and exports by semiconductor type, year, target country, mode of transportation, airport/port, and domestic region, using import/export micro-data. The visualisation, flow analysis, and Bayesian Network methodologies were used to compensate for the limitations of each method. Findings – Korea is a major exporter of semiconductor memory and has the world’s highest competitiveness but is relatively weak in the field of system semiconductors. The trade deficit in ‘semiconductor equipment and parts’ is clearly growing. As a result, continued investment in ‘system semiconductors’ and ‘semiconductor equipment and parts’ technology development is necessary to boost exports and ensure a stable supply chain. Originality/value – Few papers on semiconductor trade in Korea have been published from the perspective of the global supply chain or value chain. This study contributes to the literature in this area by focusing on import and export data for the global supply chain of the Korean semiconductor industry using a variety of approaches. It is our hope that the insights gained from this study will aid in the advancement of SCM research.

The Effects of Knowledge Assets and Path Dependence in Innovations on Firm Value in the Korean Semiconductor Industry

This study investigated whether firms’ knowledge assets and path dependence in their innovations affect firm value. For the analysis, I used 37 firms in the semiconductor industry in Korea. These firms were listed on the Korea Stock Exchange and the Korea Securities Dealers Association Automated Quotation as of 2010 and through 2015. The dependent variable was measured by return on assets as firm value, and the ordinary least squares estimation was used. The results showed that a firm’s knowledge assets have a positive effect on firm value. In addition, when a firm creates new knowledge, if the firm follows path dependence by using its own knowledge, it has a positive effect on firm value. By contrast, when a firm conducts innovations using knowledge created by other firms, it has no effect on the value of the firm. Additionally, I found that technological innovation based on knowledge assets and path dependence has a positive effect on firm value in the short term but has no effect in the medium term. Thus, firms need to continue their innovation to maintain their competitive advantage and to use their existing knowledge in innovation in order to have high performance.

The Initial Development of Memory Devices of Korean Semiconductor Industry since 2000s

The Initial Development of Memory Devices of Korean Semiconductor Industry since 2000s

A Study on the Competition for Semiconductor Hegemony among Korea, China and U.S.A.

4차 산업혁명의 핵심인 반도체 산업에서 한국은 메모리반도체 강자로 자리잡았다. 메모리반도체 시장에서의 패권 다툼은 신흥 도전국의 시장 진입 시도와 이를 억제하려는 패권국의 노력이 다양한 형태로 나타나고 있다. 국가안보와 연계된 반도체 산업의 특성상 기업간 경쟁 차원을 넘어, 각국 정부는 전략적으로 개입하여 산업정책과 무역정책을 구사하고 있다. 한국이 메모리반도체 패권을 유지하는 데 필요한 실질적인 전략수립을 위해, 본고에서는 세력전이 이론, 동맹전이 이론, 헤게모니 쇠퇴 이론, 전략무역 이론에 입각하여 메모리반도체 시장에서의 시장 지배자와 시장 진입자간 패권경쟁 양태를 살펴본다. 경제 이론과 국제정치 이론을 접목시켜 볼 때, 현상 유지를 원하는 시장 지배자인 패권국은 후발주자 진입 억제를 위해 무역제재, 인수합병 저지, 배타적 가격 전략, 사다리 걷어차기 등 전략을 구사한다. 현상 타파를 원하는 시장 진입자인 신흥 도전국은 자국 산업 경쟁력 제고를 위한 세제 지원, 보조금 지급, 무역 보복, 인재 스카웃, 인수합병, 동맹 참여 등을 시도한다. 시장 환경이 결코 한국의 메모리반도체 패권유지에 유리한 방향으로 순조롭게 흘러가지 않는 국면에서, 국가안보를 확보하기 위한 정부의 외교적 노력의 필요함을 주장했다.Korea has been a dominating presence in the memory semiconductor industry which has played a key role in the 4th Industry Revolution Era. There are many forms of competition for hegemony, such as the attempts of new challengers to enter the market and the efforts of super powers to deter them. Semiconductor industry is not just a matter of economy, but a matter of national security, which leads to government engagement in trade and industrial policy. This research is written in order to offer ideas for an adequate action plan that the Korean semiconductor industry needs to implement. This research focuses on hegemony competition in the memory semiconductor market between dominant firms and market entering firms using recent examples, and is based on the power transition theory, alliance transition theory, hegemonic decline theory and strategic trade theory. According to economic and international political theories, dominant firms - as super powers - want status quo. So they block exporting important semiconductors to competitors, stop M&A s by competitors, use limit pricing strategy and kick away the ladder, which can deter challengers from entering their market. Challengers want to change the regime. As a result, they reduce corporate taxes, offer subsidies for firms, implement retaliation on trade, scout for top talented engineers and scientists, try to merge other firms and join alliances in order to enhance their competitiveness in the market. Under the unfavorable circumstances for Korean firms to maintain dominance, this research emphasizes the importance of diplomatic efforts to guarantee national security.

How a firm's position in a whole network affects innovation performance

ABSTRACTA whole network consists of the relationships that exist among members of a population. However, prior studies treated the whole network as a metaphor, and consequently, existing empirical research is limited. As such, this paper investigates the effects of a whole network on firm innovation performance among firms engaged in the Korean semiconductor industry using three variables, namely main component, eigenvector centrality, and closeness centrality. The effects are then analysed using two-step generalised method of moments estimates. The results show a firm is included among the main component in a whole network, and the more centralised it is in terms of connectivity and distance, the more advantageous it is for firm innovation. The significance of this paper is two-fold; First, unlike previous studies that use variables reflecting collective characteristics, this study uses variables reflecting the characteristics of individual firms in a whole network. Second, it is a rare empirical study of a whole network.

Study on International Trade Volume of the Korean Semiconductor Industry : Focusing on Distribution Efficiency

Study on International Trade Volume of the Korean Semiconductor Industry : Focusing on Distribution Efficiency

Precision vacuum pumping speed measurement using sonic nozzles

Constant volume flow meter systems were developed for measuring pumping speeds of dry vacuum pumps. Their capability to measure throughput in the low vacuum region was exploited to calibrate 0.03, 0.2, and 1.6 mm throat diameter sonic nozzles. It was demonstrated that the calibrated sonic nozzles enabled the precise measurement of the pumping speed of a dry vacuum pump under test as the constant volume flow meter systems. To examine the measurement capability of both approaches considered in this study, the expanded measurement uncertainty, as well as the detailed measurement uncertainty budget, is presented. The proposed pumping speed measurement method has potential application for a new “in situ and portable” pumping speed tester or analyzer for the Korean semiconductor and flat display process industry.

Cases series of malignant lymphohematopoietic disorder in korean semiconductor industry.

ObjectivesSeven cases of malignant lymphohematopoietic (LHP) disorder were claimed to have developed from occupational exposure at two plants of a semiconductor company from 2007 to 2010. This study evaluated the possibility of exposure to carcinogenic agents for the cases.MethodsClinical courses were reviewed with assessing possible exposure to carcinogenic agents related to LHP cancers. Chemicals used at six major semiconductor companies in Korea were reviewed. Airborne monitoring for chemicals, including benzene, was conducted and the ionizing radiation dose was measured from 2008 to 2010.ResultsThe latency of seven cases (five leukemiae, a Non-Hodgkin's lymphoma, and an aplastic anemia) ranged from 16 months to 15 years and 5 months. Most chemical measurements were at levels of less than 10% of the Korean Occupational Exposure Limit value. No carcinogens related to LHP cancers were used or detected. Complete-shielded radiation-generating devices were used, but the ionizing radiation doses were 0.20-0.22 uSv/hr (background level: 0.21 µSv/hr). Airborne benzene was detected at 0.31 ppb when the detection limit was lowered as low as possible. Ethylene oxide and formaldehyde were not found in the cases' processes, while these two were determined to be among the 263 chemicals in the list that was used at the six semiconductor companies at levels lower than 0.1%. Exposures occurring before 2002 could not be assessed because of the lack of information.ConclusionConsidering the possibility of exposure to carcinogenic agents, we could not find any convincing evidence for occupational exposure in all investigated cases. However, further study is needed because the semiconductor industry is a newly developing one.

Cancer Mortality and Incidence in Korean Semiconductor Workers

ObjectivesThe purpose of this study was to evaluate cancer risks in the Korean semiconductor industry.MethodsA retrospective cohort study was performed in eight semiconductor factories between 1998 and 2008. The number of subjects was 113,443 for mortality and 108,443 for incidence. Standardized mortality ratios (SMR) and standardized incidence ratios (SIR) were calculated.ResultsThe SMR of leukemia was 0.39 (95% Confidence Interval 0.08-1.14) in males (2 cases) and 1.37 (0.55-2.81) in females (7 cases). The SMR of non-Hodgkin's lymphoma (NHL) was 1.33 (0.43-3.09, 5 cases) in males and 2.5 (0.68-6.40, 4 cases) in females. The SIR of leukemia was 0.69 (0.30-1.37, 8 cases) in males and 1.28 (0.61-2.36, 10 cases) in females. The SIR of NHL in females was 2.31 (1.23-3.95, 13 cases) and that of thyroid cancer in males was 2.11 (1.49-2.89, 38 cases). The excess incidence of NHL was significant in female assembly operators [SIR=3.15 (1.02-7.36, 5 cases)], but not significant in fabrication workers. The SIR of NHL in the group working for 1-5 years was higher than the SIR of NHL for those working for more than five years. The excess incidence of male thyroid cancer was observed in both office and manufacturing workers.ConclusionThere was no significant increase of leukemia in the Korean semiconductor industry. However, the incidence of NHL in females and thyroid cancer in males were significantly increased even though there was no definite association between work and those diseases in subgroup analysis according to work duration. This result should be interpreted cautiously, because the majority of the cohort was young and the number of cases was small.

A Study on Relations Between Alliance Forms and Firm's Characteristics in Korean Semiconductor Industry to Prevent Trade Disputes

A Study on Relations Between Alliance Forms and Firm's Characteristics in Korean Semiconductor Industry to Prevent Trade Disputes

Sustained Development of the Korean Semiconductor Industry: The Acquisition of the Global Market by Samsung Electronics

Sustained Development of the Korean Semiconductor Industry: The Acquisition of the Global Market by Samsung Electronics

Development of technology-intensive industries in Korea

This article evaluates the effect of research and development (R&D) promotion policies on the development of Korea's technology-intensive industries. Together with financial and taxation benefits, national R&D projects have played a crucial developmental role. The formation of a national R&D consortium by the government contributed to the transformation of the Korean semiconductor industry from an imitator to an innovator by facilitating technological catch-up. In the case of the mobile handset industry, the national R&D project played a key role in making Korea a technological leader. This article reveals that the role of the government was crucial in the development of such technology-intensive industries.

Managers’ quality and performance perceptions: The case of the Korean semiconductor industry

Quality is a multidimensional concept. As a result, managers have different perceptions about 'quality', defining it in diverse ways. The primary objective of this research is to investigate how managers in the semiconductor industry perceive quality, using the multidimensional perspectives developed in the literature. Through factor analysis, we identify three comprehensive dimensions of quality: transcendent, production-based and value-based. In addition, we propose that the managers have different ideas about the relationship between quality and performance. That is, we want to investigate which performance measures the managers believe they can improve by enhancing the quality. For this question, we group key performance measures into four components: productivityrelated, customer-focused, system-related and market share. Finally, we examine the correlation between quality and performance perceptions. The research results indicate that there is indeed significant correlation: the managers who view quality from the value-based perspective most strongly believe that enhancing quality is an effective way to improve key performance measures of their company.