BMEA 12/10

1. Solar energy industry in China

 - Increased emission of CO2

 - Due to evolution of technology, silicon consumption decreased 

 - Increasing demand on solar panels

 - Lack of economy of scale, uncertainty of government policy, standard

 - Poly-silicon -> Ingot/Wafer -> Cell -> Module -> System (Value chain of Solar energy industry)

   <---------------------Technology

   <---------------------Product scale

 - Hemlock(Germany) -> LDK Solar(China) -> First Solar(US) -> Suntech(China) -> Powerlight(US)

 - Profit rate of Ingot/Wafer is around 16 ~ 26%. <-- Wow.. really high.. I think I need to invest in LDK Solar.. 

 - Chinese company focused on labor intensive module, system first and then moved to Poly-silicon & ingot/wafer market. 

 - Success factor of Chinese companies. Government subsidy or huge local market?

 - Chinese firm exported 90~95% of total production

 - But domestic demand will help them to sustain their growth. New subsidy policy to boost domestic demand.

 - Chinese government's subsidy : direct & indirect(0% loan for solar panel installation)

2. Ship building industry between Korea & China

 - Ship building industry of Korea accounts for 40% of global market share

 - North East Asia ship building industry accounts for 89% of global market share

 - Korea : high value vessels, China : less value added vessels, but good potential for the future 

 - Korea : VLCC, EU : Cruise, Japan : LPG, Tanker, China : Small BC, small container, Product TK

 - Korea : diesel engine industry, steel industry, shipping industry

 - China vs. Korea : Cost(C), Non-Cost factors(K), Workforce(K), Productivity(K), System(K), Related business(K)

 - China SOE(CSSC, CSIC) vs Korea's nine stars

 - Korea's reaction to threat : differentiation(cost or product), uniform response among ship building companies. 

 - Being a maritime 'knowledge hub' <- example Boston as bio industry, Silicon valley as IT

 - Korea will lose the ship building market in terms of volume, market share. But will be viable

 - Technology will continue to be a driving factor and Korea could utilize this to the full

3. Flat Panel Industry

 - LCD industry is connected with complicated value chain

 - High investment and price decline

 - Major players : Samsung, LGD vs AU Optronics(AUO), Chemei Innolux(CMI)

 - Taiwan started LCD business with Japanese technology