Global IT companies tap Korean brains here

Major foreign semiconductor makers and information technology companies are making a series of forays into Korea, building research centers and production facilities. Their moves have been prompted by rich human resources in Korea and a bright market outlook, the firms say. U.S.-based Fairchild Semiconductor International Inc. on Monday opened a research and development center for mobile phones and screen displays in Yangjae-dong, southern Seoul. Beginning with seven staff members, the institute plans to develop low-power semiconductors while increasing its staff to over 20 researchers. Fairchild chairman Tom Beaver said, “Korea is an important market for us where two of our five core clients ― Samsung Electronics Co. and LG Electronics Inc. ― are located. We plan to continue investing here.” A day later, SAP, the leading provider of business software solutions in the United States, opened its R&D center in Seoul, its 11th such facility worldwide. The company said it would spend about 9 billion won ($8.7 million) on the Korean R&D center to come up with products optimized for the Korean market. Late last year, U.S.-based Advanced Micro Devices, a major chip maker, opened an R&D center in Samsung-dong in Seoul, where many high-technology companies are located. Recruiting 20 more researchers in the near future, the center will be devoted to coming up with computer processors for the latest mobile technologies in Korea such as wireless broadband Internet access, and high-definition televisions. “With advanced Internet infrastructure, innovative mobile technologies and excellent IT workers, Korea is the best place for developing innovative products. At the same time, it is an ideal test-bed,” said Hector Ruize, chairman of AMD. Meanwhile, other high-tech firms are setting up production facilities. Schott, a German glass manufacturer, recently announced it would set up a plant in North Chungcheong province together with Japan’s Kuramoto Seisakusho, a maker of glass substrates for liquid crystal displays. Initially, the two companies plan to set aside $115 million for the facility to churn out seventh-generation glass sheets for LCDs, for which Korea has mounting demand. Meanwhile, the world’s largest glass maker, Asahi Glass Co. of Japan began operating an LCD glass panel plant in Gumi, North Gyeongsang province while another Japanese glass producer, NEG, in collaboration with LG Philips LCD Co. will supply 60,000 glass sheets per month within the first half of this year. by Kim Chang-woo