Korea: Breaking into emerging markets

Linear Technology, which traditionally focuses on high-performance analog ICs, is expanding its business in various markets in Korea this year. The move is mainly brought about by the company’s success in consumer electronics and mobile phone markets.



See Illustration 1



In the past, power management ICs have accounted for a large portion of Linear’s market in Korea. This year, the company will also focus on supplying a variety of product lines such as RF products, power modules and data converters.Additionally, the Korean branch will form a group called the “Emerging Team” with the task of achieving 40 percent of gross sales in Korea’s emerging markets, which include automotive products and industrial applications.



According to a report by the International Telecommunication Union (ITU), Korea accounts for 20 percent of the global mobile phone supply market in 2006. In line with this, Linear Technology is expanding its already wide range of reliable analog products for highquality multimedia phones.



BUDDING OPPORTUNITIES

“We are investing heavily in R&D so we can develop highperformance linear ICs and leading analog products. The technical advantage of our white LED drivers and chargers stand unchallenged in Korea’s mobile phone market,” said S.K. Hong, area sales manager at Linear Technology Korea.



In the automotive electronics market, Linear supplies analog products such as navigation and A/V systems to leading German and Japanese vehicle manufacturers. The company is also a major player in high-end consumer products such as digital TVs.



“It is true that Linear’s part/ unit price is higher than that of third-party companies. But in the long run, I think our products have the price advantage because total development costs for systems can be reduced in terms of total solution costs,” Hong added. “In the automotive electronics sector, for example, the lifecycle of parts should be longer compared to products in the consumer electronics market. Hence, performance is more important than price.”



Technical support service is also a main factor of Linear’s business success. As the company manufactures its own products, it can deliver products to customers much faster, which in turn can significantly decrease the product development cycle.