Company Profile / SAC Korea Full-service semiconductor distributor proposes win-win collaborations The Silicon Application Corporation Group (SACG) is based in Taiwan with offices in Hong Kong, mainland China, Japan, India, Malaysia, and Thailand. It is headed by Chairman K.Y. Chen. The company was first established in 1987, and recently opened a branch office in Seoul in 2003. SACG has stated its goal of becoming a magnificent semiconductor distributor in Korea, as well as the rest of Asia. Kwak Min-ho, country manager of the Korean Branch of the SACG, spoke about his company's current situation by saying that SACG's major offerings include cards from well-known companies such as Infineon, Philips, MediaTek Inc., Winbond Electronics Corp., OSRAM Opto Semiconductors, and Sanyo. In addition, SACG offers products from approximately 100 other companies. In order to manage such extensive product distribution, the company employs approximately 1000 people worldwide. SACG has entered into a joint venture with the World Peace Industrial Group (WPIG) under the company World Product Group Holdings Limited (WPG). Together the companies employ over 3000 qualified people. The SACG, as a major distribution company, experiences fierce competition in the distribution sector. It has developed strategies to cope with such fierce competition. It has set up a turn-key business model, allowing new locations to go live quickly. It is also effectively structured to take advantage of its multi-national network of sales offices, warehouses, and technical support centers. Finally, its strategic partnerships allow it to survive in today's market world. But the SACG is not only a distribution company. Its business support center can provide full-service support to customers who are interested in developing their own silicon hardware products. Partners can take advantage of services such as an integrated supply chain, marketing, sales personnel, order management, financial advice, and procurement in order to reinforce the international core competence of their company. SACG is actively seeking companies in Korea who want to take advantage of such offerings. When asked about the subject of company relationships, Kwak Min-ho stressed that the WPG is actively searching for sister companies in Korea that would be interested in integrating with the existing companies. The group would integrate under WPG Korea, which currently has 30 employees, has a target employment of 100 employees and a target business volume of $180 million in 2008. The Group plans to stretch out various hardware market segments including display, mobile, networking, and automotive. It also offers cards for PDAs, MP3 players, home theater systems, wireless headsets, and other electronic devices. Its customers already include many companies in Korea such as Humax Company Limited, ubiQuoss Incorporated, Bellwave Company Limited, Davolink, TBK Corporation, and VKmobile. Country Manager Kwak Min-ho noted that after the Chinese market, in which SAC is already heavily involved, Korea is the most attractive potential market for Taiwanese semiconductor companies. He also states that Taiwanese and Korean companies are well-matched to do business in the current market environment. He concluded by saying that comparatively, Korea and Taiwan are very similar in both the business environment and system of society. However, both countries' companies still lack a truly mutual understanding. If the companies of the two countries can come together, the business relationships that can be developed will be beneficial for all involved.