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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: REH who wrote (18596)	4/13/1999 7:47:00 PM
From: Mihaela	Read Replies (1) \| Respond to of 93625

Korean IC makers face brain drain By B.H. Seo EE Times (04/13/99, 3:01 p.m. EDT) SEOUL, South Korea — As the South Korean government presses consolidation of the semiconductor industry here through its so-called "Big Deal" plan, Asian and U.S. competitors are beginning to snap up senior Korean engineers and, with them, some of the South Korean industry's core IC technologies. Engineers from LG Semiconductor in particular are being recruited by U.S., Taiwanese, Singapore and Malaysian chip makers, industry sources said. Since a merger plan between LG Semiconductor and Hyundai Electronics was announced on Jan. 20, about 20 Korean engineers and researchers have jumped to foreign manufacturers. Another 40 to 50 engineers are expected to move to foreign companies in the second half of 1999.Industry experts estimate that the Korean industry, which holds about 40 percent of the world DRAM market, could suffer losses as high as $2 billion if some of the world's best DRAM technology ends up with foreign competitors. About 40 of the 4,000 senior researchers at Samsung, LG, Hyundai, Anam Semiconductor and other Korean chip makers engaged in Rambus DRAM design and production work are ranked as world class. Many of these are reportedly being scouted by foreign IC manufacturers in Asia and the United States. The prospect of a semiconductor engineering brain drain has industry executives here worried, since the Rambus DRAM market is expected to grow to $20 billion annually after 2000. Sources here confirmed that 14 LG Semicon researches who have been "retired" since January are now employed by semiconductor-related companies in the United States, Malaysia and Singapore. Since being formed last year, for instance, Malaysia's First Silicon has attracted 20 researchers from LG and Samsung. Reports here said senior engineers were initially contacted by e-mail with offers to cover applicants' airfare and hotel accommodations for job interviews. Many received job offers from First Silicon with salaries ranging from $100,000 to $150,000 a year. "We are doing our best to stop [the] leaking of senior engineers to foreign countries," said an LG executive. Still, observers here said their is no definitive plan in place to stop the brain drain as consolidation of the Korean IC industry proceeds. Exclusive to EE Times by Chom Dan Inc. (Seoul, South Korea). eet.com