Industry Opportunity

A typical power semiconductor, the StakPak from ABB.
A typical power semiconductor, the StakPak from ABB.

 

It has been pointed out that the domestic power semiconductor industry should be stimulated, amid expectations that the demand for power semiconductors, an essential component of electronic products, will keep rising.

Ahn Ki-hyun, director of the Korea Semiconductor Industry Association (KSIA), stressed that “The world’s power semiconductor market is seeing rapid growth due to the smart grid, energy storage systems (ESSs), and electric cars, but domestic companies’ world market share is a tiny 1.1 percent. To enhance the domestic power semiconductor’s competitiveness, we need to coordinate research development, human resources support, and national policies.” The statement was made during the 1st Semiconductor Technology and Market Trend Seminar that was hosted at KSIA, in Pangyo, Gyeonggi Province.

A power semiconductor is a kind of analog system semiconductor, and is used to control electric power or improve electricity consumption efficiency.

According to the association, the world’s power semiconductor market size is expected to grow from last year’s US$30 billion to 2016’s US$35 billion.

However, domestic companies only account for US$330 million of the total.

Specifically, as of 2012 the world market was shared by IT with US$3 billion, Infineon with US$1.84 billion, ST with US$1.83 billion, and Mitsubishi with US$1.29 billion, attesting to foreign firms’ predominant lead. None of the Korean firms made the top ten.

The director explained, “The domestic power semiconductor technology which level stands at 70 percent of that of advanced countries has been stagnant for the last 10 years. Amid advanced countries’ steady research development, the technological gap will be exacerbated.”

The U.S. will infuse US$70 million for the next 5 years in power semiconductor areas upon establishing a next-generation power electronics research organization in January 2014. However, our government does not have any specific measures as to nurturing the power semiconductor industry as of now.

Copyright © BusinessKorea. Prohibited from unauthorized reproduction and redistribution