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# October 20, 2004
# The Electronic Times
# By Sim Kyu-ho



In an effort to strategically approach the growing world market for automobile semiconductors, domestic semiconductor makers, automobile manufacturers and research organizations are joining forces to develop semiconductors for vehicles.

Foreseeing that the world market for automotive semiconductors will be worth 50 trillion won (approximately 43.66 billion dollars) to 60 trillion won in 2010, car component module firms are also making concerted effort to develop new technologies.

As a part of their efforts, semiconductor and electronic component industry organizations, and leading semiconductor makers held a seminar on automotive semiconductors on October 19 in Seoul.

The seminar was attended by industry organizations such as the Semiconductor Research Association, MEMS Technology Research Association, and the Next-generation Growth Engine Technology Consortium, as well as leading chip and automobile makers, including Samsung Electronics, LG Electronics, Infineon, Magnachip Semiconductor, Hyundai Kia Motor, Hyundai Mobis and Mando.

"The industry agrees that future demand for semiconductors will come from automobile industry in succession to PCs, and Samsung Electronics is putting focus on automotive semiconductors," said Jeong Chil-hi, executive director of system LSI division at Samsung Electronics, at the seminar.

Predicting that ratio of automotive semiconductors in the total semiconductor market will increase from 5% in 2000 to 9.6% by 2015, Prof. Kim Jung-hwi of the Next-generation Growth Engine Technology Consortium said, "The consortium will intensify its efforts to form win-win relations between automobile industry and semiconductor makers."

"Japanese government is said to provide a variety of privileges to enterprises that take initiative in adopting automotive semiconductors as a part of its strategy to boost adoption of such semiconductors," said Oh Jun-nam, manager of electronic development team at Mando. "Korean government also needs to make administrative consideration in support of overseas marketing of automotive semiconductors," he added.

"In light of the WTO pacts, the government is not in a position to provide any direct support to the industry, it will, however, lure car and semiconductor makers to create mutual collaboration models by sharing risks and profits," said Choi Min-gu, director of semiconductor and electric technology division at the Ministry of Commerce, Industry and Energy.

Most active in developing technologies in this segment is Samsung Electronics. The company plans to develop semiconductors used for car bodies and gauge boards in the first phase, those for information systems including telematics in the second phase, and chips for power and safety systems in the third phase. Samsung Electronics will initially concentrate resources on development of DVDs, LCD, contact image sensors, and smart cards used for vehicles after securing reliability and stability of chips for car bodies and gauge boards in high and low temperatures, ranging from 25 degrees below zero and 125 degrees above zero Celsius.

"The company is designing specifications of semiconductors in sufficient consultation with customers, and it has formed cooperative relations mainly with domestic automobile makers," said Kim Seong-hyeon, manager at system LSI business division of Samsung Electronics.

Presently, Motorola and Infineon Technologies account for 12.9% and 8.7% of the world automotive semiconductor market, respectively. "The world market for automotive semiconductors is divided by three forerunners. Motorola and Infineon dominate North American and European markets, respectively, while Renesas is leading market in Japan. When they accumulate technologies in league with automobile makers and leading-edge tech firms, domestic semiconductor makers will be able to lead the market in Asia," said Im Seung-guk, manager at Infineon Technologies Korea.