Companies must band together, work as groups
Chungnam Display Center has a longterm ambition to become an institution leading global display standardization, Kim Joon-hae, chief of the center said.
As an initial step, Chungnam Display Center will exert best efforts to make Cheonan and Asan regions in South Chungcheong (Chungnam) Province a worldfamous R&D cluster, he said.
Related to this, the center will specialize in the measurement and appraisal sector to become a global certification appraisal institution and actively participate in the standardization sector of the display industry, Kim said in an interview with the Korea IT Times.
It also plans to develop the second Crystal Valley Conference and Exhibition held November 22-24 into a global display exhibition, enabling the Cheonan and Asan regions to gain fame as the world's top display R&D cluster.
Kim said that competition is fierce among display industries of Korea, Japan, Taiwan and China and among regional clusters of each country. In the display industry particularly, the technology and cost competitiveness of whole companies included in a cluster has greater impact on sales and net profits of enterprises than that of a single company. To enhance the competitiveness of a cluster accordingly, all components should make concerted efforts, he said.
Related to this, the center will place its emphasis on fostering mid-size companies possessing global professionalism and technology and developing venture technology through close cooperation with regional universities or research centers, Kim said.
'I think it is desirable that large companies suggest direction toward development of technology and new products and mid-size companies engage in actual technology development,' said Kim. Noting that Samsung Electronics, the world's number one LCD producer, produces LCDs for monitors and notebook computers in Cheonan and Asan, Kim said: 'Accordingly, the Cheonan and Asan regions are equipped with best conditions to lead the world's display industry.'
Moreover, Samsung Electronics is building the 8thgeneration line to produce LCDs in the fourth quarter of 2007. To meet growing demand for new technological manpower, universities in the Cheonan and Asan regions are opening display-related departments and making best efforts to cultivate talented people in the display sector.
For instance, Sun Moon University is creating an R&D cluster business corps and PDP center, and Soonchunhyang University is engaging in a project to foster manpower producing high value adds.
At present, 102 display-related companies are doing business in the Cheonan and Asan regions.
Established on October 25, Chungnam Display Center is supporting appraisal and analysis businesses of enterprises developing new technology and parts.
On a long-term basis, the center will be fostered as a professional institution related to standardization and certification of the display industry, Kim said. To activate R&D projects for parts and materials as well as equipment technology, it is urgent to actively foster mid-size companies that own core technology in specific fields, global sales networks and supply capacity. As a result, sales volume should be expanded through M&As between small and medium-sized companies or technology cooperation and more investment should be made in R&D projects, he asserted.
Currently, large companies carry out projects for basic development and design and their subcontractors manufacture test goods. However, in specific sectors, mid-size companies are required to exceed and lead large companies in terms of technology power in the future, he said.
Related to this, the government's support should be focused on companies developing core technology, away from the past assistance system centering on simple R&D projects or facility construction.
Meanwhile, universities and research centers need to secure basic technology necessary for commercialization. In nutshell, large companies should suggest longterm technology development guides and mid-size companies should enhance the R&D power necessary for actual commercialization, he added.
