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Kim Sang-yeol, CEO of Serial Microelectronics Korea |
Kim Sang-yeol, head of Singapore-based Serial Microelectronics’ Korean corporation, has put in long years in the semiconductor distribution business.
He has seen the rise and fall of the sector over more than three decades, and his one wish now is to see another heyday so that more revenue can be created for all parties involved ― including, of course, Serial and its partners.
This may sound odd, since smart devices are still much in vogue, but Kim hails from an era where the semiconductor and related industries witnessed explosive growth.
Now, he hopes to relive those days by strategically approaching the emerging markets, namely China.
“We have to look towards other emerging markets in Asia in order to find new sources of income and revenue,” Kim said. “But this is tricky because the timing has to be perfect. If we go in too prematurely we’ll end up penniless pioneers. But if we go in too late, then there’s nothing to reap.”
Kim believes that in a way, Korea is too late, as many others such as Taiwan have already secured a stake in China. At the same time, China itself is also quickly playing catch-up with its other Asian rivals.
Despite the risks, Kim thinks Korean distributors have a chance because they are known to persevere.
“The ability to penetrate and carry on is our biggest asset,” he added.
When that ability is combined with more tangible assets, ideally a company with enough funds to finance the passion and ideas, then things will work out.
Serial’s presence in Korea is one such case, according to Kim.
Serial Microelectronics is a part of Serial System, a global semiconductor distributor that works with over 6,000 companies worldwide. It opened a Korean corporation in 2002 and Kim says Serial System‘s Korean operations and headquarters are immensely compatible because the local office aggressively marks out new territory based on the capital and infrastructure provided from Singapore.
Serial Microelectronics Korea last year recorded sales of just over $140 million and is aiming for $200 million this year.
A part of its revenues come from commission-based partnerships with the bigger local players such as Samsung and LG.
Others come from distributing to medical equipment manufacturers such as Siemens and Samsung Medison.
“A large part of Serial headquarters’ interest in Korea lies in the fact that it’s home to top semiconductor makers and electronics companies,” Kim explained.
Meanwhile, economic conditions also need to clear up if the chip and related businesses are to thrive, he added, because aside from medical equipment, the components Serial and other distributors ship are used largely for consumer goods such as household appliances and cars ― in the form of audio, video and navigation, and mobile devices.
Serial is supplied by both affiliates and well-known chipmakers such as U.S.-based Texas Instruments.
By Kim Ji-hyun (
jemmie@heraldcorp.com)
