Taipei, Tuesday, September 2, 2014 05:54 (GMT+8)
partly cloudy
Taipei
27°C
Digitimes Research: South Korea eyes AP development; pushing for mid-range market initially
Ricky Tu, DIGITIMES Research, Taipei [Wednesday 25 June 2014]

South Korea paid about KRW350 billion (US$342.81 million) in royalties to ARM for AP licensing in 2012, up significantly from KRW180 billion in 2008 and the fee is expected to rise to KRW900 billion by 2020 if the country does not have a home-grown AP architecture.

Seeing the issue, the South Korea government has recently started planning a project to develop an AP architecture via its Ministry of Trade, Industry and Energy (MOTIE).

At the end of the first quarter, the country already had R&D organizations successfully developing a few AP architectures, but they lacked performance and are still unable to be commercialized. Compared to ARM's high-performance highly-convenient AP architectures, South Korea's current home-grown developed architectures will have difficulties to attract vendors.

However, for the short term, the South Korea government plans to pick the most suitable AP architecture developed and invest KRW35 billion to focus on commercializing the architecture from mid-2014 to mid-2019, pushing it into the mid-range mobile device market.

As for the medium to long term, the government plans to enhance the existing AP architecture's performance from 2017-2022, raising its abilities to meet high-end standards. If successful, South Korea will be able to own a South Korea-developed high-performance AP architecture and join the high-end AP competition from 2020-2025.

With China already starting to develop its own AP architecture, South Korea is expected to accelerate its pace on related development and the project is expected to save the country US$900 million in royalties each year after 2020, Digitimes Research observed.

Content from this blog post was provided by the Digitimes Research Tracking team, which focuses on shipment data and market trends in the global mobile device supply chain. Digitimes Research provides quarterly tracking services for market sectors such as Global Tablet, China Smartphone, China Smartphone AP, China Touch Panel, Taiwan ICT and Taiwan FPD. Click here for more information about Digitimes Research Tracking services.

Realtime news
  • Gigabyte Communications to ship 2G feature phones

    Mobile + telecom | 7h 44min ago

  • Panel makers look to vehicle industry as handset panel shipments remain conservative

    Displays | 7h 50min ago

  • Automated production lines still not yet efficient for back-end assembly players

    Before Going to Press | 7h 30min ago

  • Apple cuts iPad mini prices; non-Apple vendors may follow suit

    Before Going to Press | 8h 11min ago

  • Digitimes Research: DRAM shipments to drop 20% on year in 2014 due to weak PC demand

    Before Going to Press | 8h 12min ago

  • LED demand turns weak in 3Q14, says Epistar chairman

    Before Going to Press | 8h 30min ago

  • Digitimes Research: Kickstarter wearables expand their presences in sleep sensing industry

    Before Going to Press | 8h 31min ago

  • Three flexible PCB makers raise funds to address growing business operations

    Before Going to Press | 8h 36min ago

  • Apple iWatch still under EVT despite components already in production

    Before Going to Press | 8h 38min ago

  • Taiwan market: HTC to launch HTC Butterfly 2 through cooperation with Chunghwa Telecom

    Before Going to Press | 8h 40min ago

  • Trend and technologies at Touch Taiwan 2014

    Before Going to Press | 8h 41min ago

  • Asustek readies new 2-in-1 products for competition

    Before Going to Press | 8h 42min ago

  • Demand for 8-inch wafer foundry heating up

    Before Going to Press | 8h 42min ago

  • New mobile products to benefit component suppliers until end of 2014

    Before Going to Press | 8h 43min ago

  • Acer becomes top PC and projector vendor in Philippines

    Before Going to Press | 8h 45min ago

Pause
 | 
View more
Analysis of China revised domestic semiconductor industry goals
DIGITIMES Marketing Services
  • 2014 global high brightness LED market, trends and shipment forecast

    For the global LED lighting market, the market size will reach US$25.82 billion in 2014 or a market penetration rate of 23.4%. This is attributable to exponential shipment growth for light bulbs, tubes, and directional lamps.

  • Greater China touch panel shipment forecast through 2015

    This Special Report provides forecasts through 2015 for Greater China touch panel shipments with breakdowns based on technology (glass, film, resistive), application (smartphone, NB and tablet) and by firm.

  • 2014 global tablet demand forecast

    This report analyzes the main players, their strategies and shipments forecasts for 2014, as well as other factors contributing to either growth or decline in various segments within the tablet market, with a particular focus on Apple, Google, Samsung, and Microsoft, along with whitebox vendors.