South Korean electronic industry is planning to invest 4 Trillion won to develop its LED technologies.
According to the government officials, over the next three years, the electronic industry in South Korea plans to invest 4 Trillion Won into the development of LED (light emitting diode) technologies, as reported by
TELECOMS KOREA.
This information was revealed at the meeting of senior officials of the leading companies in the industry with Choi Kyung-hwan, Knowledge Economy Minister. The basic motive of this huge investment is to build up South Korea’s research and development expertise and competitiveness in the LED sector by 2012.
During this meeting, executives from the leading companies stated that soon, they would operate locally built MOCVD (metal organic chemical vapor deposition) machines that produce a key component of LED manufacturing.
The domestic industry highly depends on imports for the first indigenous MOCVDs, which is projected to hit the market in 2010. This will be a great help to the industry as the local South Korean companies are the first to manufacture commercial LED TV sets, making the country a leader in the LED industry. Further, the presence of South Korean companies in the global LED market is expected to grow by 21.2% in 2009 and may touch 28.9% in 2010 from the level of 9.9% in 2008, said industry sources.
This announcement of investment has emerged as the South Korean government intends to disclose a comprehensive plan next month, which will support the companies to build new growth engines.
Businesses have asked the government for extending tax breaks because as compared to the long-term plans, temporary investments made by the businesses have higher risks. The government said that while negotiating the matter with the lawmakers and related ministries, it would reflect opinions from the industry as far as possible. The government aims to attract investments, and hence plans to list new engine growth items. The government also plans to measure the potential and influence they will have on the domestic industry.
According to a Research Analyst at
RNCOS, “Over the past few years, the consumer electronics industry has been witnessing a remarkable growth globally. Also, the government needs to offer incentives to the industry along with extending more tax-breaks as the businesses are struggling to meet the requirement of manufacturing more eco-friendly products.”
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