Core Logic announces new business strategy on the occasion of its 10th anniversary
Seoul, Korea .- Korea’s leading fabless semiconductor manufacturer, Core Logic (CEO Ki-soo Hwang, www.corelogic.co.kr), vowed to enter a new era of growth with a new business strategy on the occasion of its 10th anniversary on April 2nd.
Core Logic which provides multimedia function solutions on various mobile multimedia devices such as handsets, has recently been preparing for diversification of its products and market. After successfully establishing an industrial foundation by producing camera phone modules in 2002, Core Logic has been topping its mobile TV, digital camera, MP3, and games enabling Multimedia Application Processor (MAP) on mobile phones to lead evolution in the mobile phone market with its cutting edge technology.
With its technological success in the handset market, Core Logic is now preparing to expand its target market. Specifically, Core Logic’s goal is to diversify its market and revenue structure by embedding its MAP products in specialized digital mobile devices such as MP4, PMP, DMB, navigation, and gaming products. Already these efforts are paying off as Core Logic received orders for its MAP offering, DIVA, to be put in AIGO’s portable multimedia player (PMP) in 2007. With AIGO being the number one player in the Chinese consumer market, this move paved the way for Core Logic’s entry into the Chinese market.
Evolving into a total platform solutions provider
In celebration of its 10th anniversary, Core Logic announced a specific business strategy focusing on diversification of products and market. First of all, for diversification of product and market, Core Logic vows to transform into an IT services company that provides “Total Platform Solutions” which goes beyond being just a “Mobile Multimedia Chip” manufacturer. For instance, Core Logic shall identify the needs of customers in advance and offer various solution options to its customers. The handset business will be expanded into a “Mobile Business Group” which includes not only previous multimedia chips, but ISP and connectivity as well. The company aims to diversify its products by targeting the low-end market in addition to high-end solutions such as smart phones. Accordingly, Core Logic recognizes urgency in acquiring advanced technologies in ISP, connectivity (GPS, WLAN), and UI.
Meanwhile, the digital consumer business has been expanded into the “Automotive and Portable Business Group” based on PND (Personal Navigation Device) and Core Logic plans to supply various products such as PND, UMPC multimedia, and mobile TV.
“Speed Management” through “Maximization of Efficiency”
As its business strategy to achieve its transformation into an IT services company and to accomplish diversification of products and market, Core Logic proposes “Speed Management” and “Maximization of Efficiency.” First of all, “Speed Management” identifies the needs of customers and establishes a system that can provide various products at the right time. Obstacles to this strategic journey are increasing complexity in IP and chip tests and continuous increase of TAT in product development. However, Core Logic is convinced of achieving success through maximizing usage by developing more than five products in parallel at the same time, and by standardizing and reusing chips, SW, and platforms.
As for maximizing efficiency, Core Logic plans to strengthen partnerships and outsourcing in all areas except its core IP to add momentum to its business of Speed Management. In addition, the company plans to focus on aggressive market targeting and technology development through M&As to acquire talented workers and enter new markets.
The hardships of Korean fabless semiconductor manufacturers are increasing by the day due to external blockers such as increasing difficulty in entering the rapidly narrowing market, fiercer competition in the high-end market due to the activities of large companies including global companies, and strengthening market dominance in the low price market by Chinese and Taiwanese companies. Other difficulties exist in the development process as well such as longer development time and higher costs due to increasing IP complexity and increasing outsourcing development costs due to sophistication of the production process. Amidst the hardships, Core Logic has announced its goal of Speed Management and market diversification based on maximization of efficiency and is strengthening its strategic approach towards this end. Furthermore, it has prepared a close support system to solidify its relationship of trust with existing customers.
Over the past 10 years Core Logic has accomplished a success story through superior self-developed multimedia technology and a relationship of trust with its customers. Now, it is preparing for a new leap into the future. It is pushing upwards into the ranks of a total platform solutions provider that responds quickly to market changes by leveraging partnerships and outsourcing based on economy of size and select M&As.
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