I was scared of the technology I was exposed to 20 years in the past… Korean companies sold to China Soft China by Joe Ara

[조아라의 소프트차이나 87]
“Achieving Localization of Supply and Semiconductors by Acquiring a Korean Company”
A Chinese technique utilized in the previous… chilly pimple
Buying labor, buying companies… China absorbs Korea’s ‘core nationwide technology’
Losses of 22 trillion gained in 5 years… “Strict precautions are wanted”

Image = Geogwang Kerzy. website

Kowind ST, knowledgeable producer and provider of residence semiconductor and liquid crystal show (LCD) gear, has not too long ago been sold to a Chinese firm. Founded in 2005, Kowind ST is a small nationwide firm that has many authentic patents for LCD restore kits and OLED restore equipment manufacturing technology. In 2019, Moon Jae-in’s authorities was so acknowledged for its technological prowess and development potential that it was chosen as a small and medium-sized (supplies, components and gear) firm to lead Korea’s digital financial system, solely to be sold to China in simply three years.

“Achieving Localization of Supply and Semiconductors by Acquiring a Korean Company”

Disclosure associated to Geogwang Kerji. Photo = Shanghai Stock Exchange

On the tenth, China’s Focuslight (*20*) (Geoguang Kerzi) introduced on the Shanghai Stock Exchange that it’ll purchase 100% of Korea’s Kowind ST for 350 million yuan (about 69.9 billion gained). Founded in 2007, Focusrite manufactures and markets high-performance semiconductor laser and optical elements. After buying Limo, a German semiconductor laser firm, in 2017, the firm has progressively begun to take over main international companies, together with most not too long ago Korea’s Kowind ST.

Kowind ST owns about 60 patents associated to laser restore of LCD and OLED. This technology is used to appropriate defects in the manufacturing of show panels. Laser restore gear geared up with this technology is crucial for companies that manufacture shows in massive portions. With this acquisition of Focuslite from China, we plan to localize core shows and semiconductor gadgets in the medium to long run.

“Clear synergies are anticipated throughout all semiconductor processing companies, together with superior shows and semiconductor built-in circuits,” Focusright mentioned.

A Chinese technique used earlier than…my backbone is “trembling”

BOE, the world's leading display company.  Image = BOE website
BOE, the world’s main show firm. Image = BOE web site

When you watch the Cowind ST buy, you’re feeling deja vu. This applies to BOE (Jingdong Fang), which is presently the largest show firm in China and has the largest world market share. Until the early 2000s, the Bank of England was solely a subcontractor for Japanese companies. The purpose for the “revival” of the Bank of England, which was always struggling losses, was in late 2002, when it acquired “Hydis”, a liquid crystal show (LCD) from Hyundai Electronics in Korea. The Bank of England ramped up computing instantly after the takeover to purchase the underlying technology and went bankrupt 4 years later.

BOE, then Tier III, started manufacturing LCD panels in June 2003 with Hydis technology. Finally, in 2017, the firm overtook LG Display to turn into the largest world chief in the LCD show market. The firm not too long ago began producing state-of-the-art OLED panels and provided them for Apple’s iPhone 14. This is the first time that Chinese OLED panels of small and medium measurement are put in on a brand new iPhone. Meanwhile, Samsung Display and LG Display launched OLED screens for the iPhone.

According to market researcher Omdia, Chinese shows BOE, CSOT (China Star), Tianma and Visionox accounted for 20.5% of the small and medium-sized natural light-emitting diode (OLED) market in the second quarter of final yr. The market share, which was in single digits in 2019, elevated to 17.7% in contrast to final yr.

Labor and Business Acquisitions… China Absorbs Korea’s ‘Core National Technology’

Chinese companies stealing technology and labor are not a factor of the previous. According to a current job website, there was an announcement that we had been in search of somebody with expertise in small OLED design and processing to work in China. Employment necessities apply to these with greater than 5 years of normal small display course of expertise or these with greater than 8 years of CF semiconductor course of expertise. Industry hypothesis is that the firm is the Bank of England of China. Industry consultants say the wage is thrice increased than in Korea, so there is no such thing as a selection however to do it.

Last yr, MagnaChip, a mid-sized semiconductor firm, was threatened by a $1.4 billion (about 1.78 trillion gained) Chinese personal fairness fund. MagnaChip was based in 2004 as a subsidiary of the memoryless division of Hynix Semiconductor (now SK Hynix). However, shortly earlier than the sale, the acquisition fell via as the US blocked the deal citing nationwide safety dangers. This prevented the world OLED chip core technology from leaking.

Recently, the quantity of massive leaks of home applied sciences has been steadily growing. According to the NSDC, from 2018 to July of this yr, the NKR detected a complete of 83 circumstances of high-tech leaks. Among them, 33 circumstances (39.8%) had been acknowledged as “important nationwide applied sciences” that had a major affect on nationwide safety and the nationwide financial system. In explicit, the injury was concentrated in massive Korean companies (69 circumstances), reminiscent of semiconductors, energy, electronics, shows and vehicles. They are mentioned to steal technology via strategies reminiscent of △ shopping for key workers, utilizing mergers and acquisitions, utilizing companion companies, amassing technical data via analysis companies in the identify of leaking technology beneath the guise of joint analysis, offering knowledge on conditional approvals and permits .

22 trillion gained was destroyed in 5 years… “Strong preventive measures are wanted”

LG Electronics introduced the world's largest 97-inch OLED TV.  photo = news 1
LG Electronics launched the world’s largest 97-inch OLED TV. picture = information 1

Most of the technology leakage goes to China, and the trade estimates the injury induced by the leakage of the nation’s core applied sciences over the previous 5 years at 22 trillion gained. The authorities is making an attempt to revise the Industrial Technology Protection Act to stop such injury.

In 2004, Korea overtook Japan to turn into the world’s primary nation, however final yr it was overtaken by China for the first time in 17 years. By 2024, China is anticipated to rank first in the world for small and medium-sized OLED shows. China ranked first with a 41.5% show market share by nation, in accordance to knowledge from the Korea Display Industry Association and analysis agency Omdia. in phrases of gross sales final yr, Korea ranked second with 33.2%, a step again. Its existence has grown to such an extent that it’s unattainable to ignore it. Recently, Samsung and LG have discontinued or lowered their LCD enterprise. It appears to be like like we’d like to firmly put together for China’s transition to turn into a powerful OLED participant after LCD.

Reporter Joe Ara at Hankyung.com rrang123@hankyung.com

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