DOCSLIB.ORG

Annual Report 2018

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Annual Report 2018 08493 SMIC AR18 cover ENG (15.5mm).pdf 1 17/4/2019 下午5:36 Annual Report 2018 C M Y CM MY CY CMY K 2018 Annual Report Semiconductor Manufacturing International Corporation No.18 Zhangjiang Road, Pudong New Area, Shanghai 201203, The People’s Republic of China Tel : + 86 (21) 3861 0000 Fax : + 86 (21) 5080 2868 Website : www.smics.com (Incorporated in the Cayman Islands with limited liability) Stock Code: 0981 Shanghai . Beijing . Tianjin . Jiangyin . Shenzhen . Hong Kong . Taiwan . Japan . Americas . Europe SMIC GLOBAL NETWORK TIANJIN SAN JOSE, CA, USA BEIJING MILAN, TOKYO, ITALY JAPAN JIANGYIN, JIANGSU SHANGHAI AVEZZANO, (Headquarters) ITALY SHENZHEN, GUANGDONG HSINCHU, TAIWAN HONG KONG (Representative) SMIC FAB SMIC MARKETING OFFICE SMIC REPRESENTATIVE OFFICE SMIC BUMPING FAB THE LARGEST ADVANCED FOUNDRY IN MAINLAND CHINA EMPOWERED TECHNOLOGY ENRICHED SERVICES, ENHANCED COMPETITIVENESS CONTENTS 05 Additional Information 07 Corporate Information 09 Financial Highlights 11 Letter to Shareholders 12 Business Review 17 Management’s Discussion and Analysis of Financial Condition and Results of Operation 23 Directors and Senior Management 31 Report of the Directors 94 Corporate Governance Report 113 Social Responsibility 116 Independent Auditor’s Report 121 Consolidated Statement of Profit or Loss and Other Comprehensive Income 122 Consolidated Statement of Financial Position 124 Consolidated Statement of Changes in Equity 126 Consolidated Statement of Cash Flows 128 Notes to the Consolidated Financial Statements CAUTIONARY STATEMENT FOR PURPOSES OF THE “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 This annual report may contain, in addition to historical information, “forward-looking statements” within the meaning of the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995 and Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. These forward-looking statements are based on SMIC’s current assumptions, expectations and projections about future events. SMIC uses words like “believe”, “anticipate”, “intend”, “estimate”, “expect”, “project” and similar expressions to identify forward looking statements, although not all forward-looking statements contain these words. These forward-looking statements are necessarily estimates reflecting judgment of SMIC’s senior management and involve significant risks, both known and unknown, uncertainties and other factors that may cause SMIC’s actual performance, financial condition or results of operations to be materially different from those suggested by the forward-looking statements including, among others, risks associated with cyclicality and market conditions in the semiconductor industry, intense competition, timely wafer acceptance by SMIC’s customers, bad debt risk, timely introduction of new technologies, SMIC’s ability to ramp new products into volume, supply and demand for semiconductor foundry services, industry overcapacity, shortages in equipment, components and raw materials, availability of manufacturing capacity and financial stability in end markets. Except as required by law, SMIC undertakes no obligation and does not intend to update any forward-looking statement, whether as a result of new information, future events or otherwise. ABOUT NON-GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (“NON-GAAP”) FINANCIAL MEASURE This annual report includes EBITDA, which is a non-GAAP financial measure. Such non-GAAP financial measure is not calculated or presented in accordance with, and are not alternatives or substitutes for financial measures prepared in accordance with IFRS, and should be read only in conjunction with the Group’s financial measures prepared in accordance with IFRS. The Group’s non-GAAP financial measures may be different from similarly-titled non-GAAP financial measures used by other companies. The presentation of non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with IFRS. SMIC believes that use of these non-GAAP financial measures facilitates investors’ and management’s comparisons to SMIC’s historical performance. The Group’s management regularly uses these non-GAAP financial measures to understand, manage and evaluate the Group’s business and make financial and operational decisions. For more information and reconciliations of the non-GAAP financial measure to its most directly comparable GAAP financial measure, please see the disclosure on page 22. SMIC 2018 Annual Report 05 ADDITIONAL INFORMATION References in this annual report to: • “2019 AGM” are to the Company’s annual general meeting scheduled to be held on or around June 21, 2019; • “BGN” are to Bulgarian Lev; • “Board” are to the board of Directors; • “China” or the “PRC” are to the People’s Republic of China, excluding for the purpose of this annual report, Hong Kong, Macau and Taiwan; • “Company” or “SMIC” are to Semiconductor Manufacturing International Corporation; • “Director(s)” are to the director(s) of the Company; • “EUR” are to Euros; • “Group” are to the Company and its subsidiaries; • “HK$” are to Hong Kong dollars; • “Hong Kong Stock Exchange Listing Rules”, “Listing Rules” or “Hong Kong Listing Rules” are to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, as amended from time to time; • “IFRS” are to International Financial Reporting Standards as issued by the International Accounting Standards Board; • “JPY” are to Japanese Yen; • “NYSE” or “New York Stock Exchange” are to the New York Stock Exchange, Inc.; • “Ordinary Share(s)” are to the ordinary share(s), in the share capital of the Company, of US$0.0004 each before December 7, 2016 and to the ordinary share(s) of US$0.004 each upon the Share Consolidation becoming effective on December 7, 2016; • “RMB” are to Renminbi; • “SEC” are to the U.S. Securities and Exchange Commission; • “SEHK”, “HKSE” or “Hong Kong Stock Exchange” are to the Stock Exchange of Hong Kong Limited; • “Share Consolidation” are to the consolidation of every ten (10) issued and unissued ordinary shares of US$0.0004 each in the existing share capital of the Company into one ordinary share of US$0.004 each with effect from December 7, 2016; • “US$” or “USD” are to U.S. dollars; and • “U.S. GAAP” are to the generally accepted accounting principles in the United States. All references in this annual report to silicon wafer quantities are to 8-inch wafer equivalents, unless otherwise specified. Conversion of quantities of 12-inch wafers to 8-inch wafer equivalents is achieved by multiplying the number of 12-inch wafers by 2.25. When we refer to the capacity of wafer fabrication facilities, we are referring to the installed capacity based on specifications established by the manufacturers of the equipment used in those facilities. References to key process technology nodes, such as 0.35 micron, 0.25 micron, 0.18 micron, 0.15 micron, 0.13 micron, 90 nanometer, 65 nanometer, 45 nanometer and 28 nanometer include the stated resolution of the process technology, as well as intermediate resolutions down to but not including the next key process technology node of finer resolution. For example, when we state “0.25 micron process technology” that also includes 0.22 micron,0.21 micron, 0.20 micron and 0.19 micron technologies and “0.18 micron process technology” also includes 0.17 micron and 0.16 micron technologies. The financial information presented in this annual report has been prepared in accordance with IFRS. SMIC 2018 Annual Report 06 CORPORATE INFORMATION BEING TRUSTWORTHY AND RELIABLE FOR OUR CUSTOMERS SMIC 2018 Annual Report 07 CORPORATE INFORMATION Registered name Semiconductor Manufacturing International Corporation Chinese name (for identification purposes only) 中芯國際集成電路製造有限公司 Registered office PO Box 2681 Cricket Square Hutchins Drive Grand Cayman KY1-1111 Cayman Islands Head office and place of business in PRC 18 Zhangjiang Road Pudong New Area Shanghai 201203 PRC Place of business in Hong Kong Suite 3003 30th Floor 9 Queen’s Road Central Hong Kong Website address http://www.smics.com Joint Company Secretaries Gao Yonggang Liu Wei Authorized representatives Zhou Zixue Gao Yonggang Places of listing The Stock Exchange of Hong Kong Limited (“HKSE”) New York Stock Exchange (“NYSE”) Stock code 981 (HKSE) SMI (NYSE) Financial Calendar Announcement of 2018 annual results March 29, 2019 2019 Annual General Meeting June 21, 2019 Book closure period for 2019 Annual General Meeting June 18, 2019 to June 21, 2019, both days inclusive Financial year end December 31 SMIC 2018 Annual Report 08 FINANCIAL HIGHLIGHTS STRIVING FOR RETURNS ON BEHALF OF SHAREHOLDERS SMIC 2018 Annual Report 09 FINANCIAL HIGHLIGHTS Total Revenue Revenue (US$ million) 2014 2015 2016 2017 2018 0 500 1,000 1,500 2,000 2,500 3,000 3,500 Sales by Region 13% 9% 2017 47% 2018 59% China (incl. Hong Kong) 40% 32% USA Eurasia Sales by Application 4% 6% 10% 7% 8% 8% 37% 34% 2017 2018 Computing Consumer 44% 41% Communication Auto/Industrial Others Wafer Sales by Technology 6% 8% 21% 3% 19% 4% 0.35μm 35% 39% 0.18μm 0.13μm 20% 22% 2017 2018 90nm 55/65nm 40/45nm 28nm 2% 2% 11% 8% SMIC 2018 Annual Report 10 LETTER TO LETTER TO SHAREHOLDERS SHAREHOLDERS SMIC 2018 Annual Report 11 LETTER TO SHAREHOLDERS DEAR SHAREHOLDERS, In 2018, the global political and economic environment was complex with many uncertainties. Influenced by the saturation of the smart phone markets and global trade frictions, the growth of the IC industry slowed down and the pressure of price competition increased. The industry is facing great challenges, and yet, with this environment, the Company managed to make remarkable progress, thanks to the dedication and teamwork of all SMIC’s employees. The Company recorded historic high revenue of US$3.36 billion for the year of 2018, representing a year-on-year increase of 8.3%. Earnings before interest, tax, depreciation and amortization amounted to US$1.16 billion, representing a year-on-year increase of 4.2%.
Load more

Recommended publications
  • Memory Lane and a Look Down the Road: China Progressing in NAND but Hurdles Remain
    21 July 2019 | 12:06PM EDT Made in the USA or China Memory lane and a look down the road: China progressing in NAND but hurdles remain Mark Delaney, CFA +1(212)357-0535 | [email protected] Goldman Sachs & Co. LLC Allen Chang +852-2978-2930 | [email protected] Goldman Sachs (Asia) L.L.C. We believe that China’s efforts to enter the global DRAM and NAND markets merit a Daiki Takayama +81(3)6437-9870 | deeper dive into how the memory industries have evolved over time, what impact [email protected] Goldman Sachs Japan Co., Ltd. China’s entry into other commodity tech industries (such as LEDs and solar) has had Toshiya Hari on fundamentals, where we believe the leading China-based memory companies +1(646)446-1759 | [email protected] Goldman Sachs & Co. LLC stand at present with their efforts to enter the market (and the challenges that still Satoru Ogawa +81(3)6437-4061 | exist for entering the market — with GlobalFoundries as an example that [email protected] leading-edge semi production is difficult even for well-funded efforts), and what we Goldman Sachs Japan Co., Ltd. Alexander Duval believe all this means for the stocks of the established memory, drive, and semi +44(20)7552-2995 | [email protected] equipment companies. Goldman Sachs International Timothy Sweetnam, CFA With over $150 bn of semiconductors shipped to China in 2018, per the +1(212)357-7956 | [email protected] Semiconductor Industry Association (SIA), and China domestic semi firms having Goldman Sachs & Co.
    [Show full text]
  • The Perspective of China SOI Ecosystem
    The Perspective of China SOI Ecosystem Jeffrey Wang CEO Simgui Technology World Semiconductor Conference ∙ Nanjing ∙ May 18, 2019 Why is China SOI Ecosystem Focused on RF-SOI? 2 China Smart Phone Market China Smart Phone Sales 2017 China Smart Phone Market 600 160% Million Unit 124% 128% 140% - 20 40 60 80 100 120 500 478 111% 459 422 431 120% Huawei 102 400 364 100% OPPO 78 88% vivo 72 80% 300 Apple 51 48% 60% MI 51 194 Million Unit Meizu 17 200 40% Gionee 15 16% 85 2% 11% 20% Samsung 11 100 38 Lephone 5 18 0% -4% Lenovo 2 - -20% Other 46 2009 2010 2011 2012 2013 2014 2015 2016 2017 Smart phone sales (million) Growth Rate % Smart phone sales (million) • China smart phone market reaches to 459 million • In 2017, Domestic smart phone suppliers counts units in 2017. However, growth rate becomes for 86% of China market. negative for the first time in 9 years. • Among them, Huawei, Oppo and Vivo are top three • China counts for 30% of worldwide market. suppliers and count for 56% of the China market. 3 Simgui Technology 5G Network Architecture-A High Level View 5G Network Architecture-A High Level View 5G Network Architecture-A High Level View 5G Network Architecture-A High Level View Self-ServiceChina Agile Operationis Motivated to C.Setup Unifed Database 5G Management Network User Carrier Rapid fault recovery is required for • Users want more speed. • OPEX reduction should be a network data status information (such as strategic priority for 5G. • 4G networks are hard- user data and policy data shared across pressed to meet current data• centers),CAPEX to as meet a percentagenetwork reliability of user demand.
    [Show full text]
  • The Impact of China's Policies on Global Semiconductor
    Moore’s Law Under Attack: The Impact of China’s Policies on Global Semiconductor Innovation STEPHEN EZELL | FEBRUARY 2021 China’s mercantilist strategy to grab market share in the global semiconductor industry is fueling the rise of inferior innovators at the expense of superior firms in the United States and other market-led economies. That siphons away resources that would otherwise be invested in the virtuous cycle of cutting-edge R&D that has driven semiconductor innovation for decades. KEY TAKEAWAYS ▪ No industry has an innovation dynamic quite like the semiconductor industry, where “Moore’s Law” has held for decades: The number of transistors on a microchip doubles about every two years, producing twice the processing power at half the cost. ▪ The pattern persists because the semiconductor industry vies with biopharmaceuticals to be the world’s most R&D-intensive industry—a virtuous cycle that depends on one generation of innovation to finance investment in the next. ▪ To continue heavy investment in R&D and CapEx, semiconductor firms need access to large global markets where they can compete on fair terms to amortize and recoup their costs. When they face excess, non-market-based competition, innovation suffers. ▪ China’s state-directed strategy to vault into a leadership position in the semiconductor industry distorts the global market with massive subsidization, IP theft, state-financed foreign firm acquisitions, and other mercantilist practices. ▪ Inferior innovators thus have a leg up—and the global semiconductor innovation curve is bending downward. In fact, ITIF estimates there would be 5,100 more U.S. patents in the industry annually if not for China’s innovation mercantilist policies.
    [Show full text]
  • China's Tech Sector
    SYNC. Global investment themes: technology, media and telecoms Issue No. 141 China’s Tech Sector 5 December 2016 The China Syndrome China’s government is intent on upgrading its manufacturing sector and Inside leading the world in a range of advanced technologies. Implicit in its “Made . Players in China 2025” 10-year plan is the notion that China will displace the US as . Trends the world’s dominant technological power. Value Chain . Industry analysis When we last looked at this issue, back in August 2015 (see “Tech Wars - Electric vehicles 2020: China vs US”), we concluded that the US was likely to remain a - Shared transport leader in all major advanced technologies over the next decade, with Baidu - Robotics the only Chinese player equipped to challenge the US’s lead in next - Consumer electronics generation technologies such as AI. Eighteen months on, the signs are that - Semiconductors China is closing the overall gap faster than we expected. - High perf. computing - Artificial intelligence Conclusions - Internet platforms This report researches the state and thrust of Chinese technology over the - Cloud infrastructure next two to five years and what it implies for global technology investors. - Genomics Here is what we found: . China Tech Scorecard - Who’s who . Electric vehicles: BYD (Hold) is the Chinese market leader, but - Thematic Screen competition from Alibaba, Baidu, Tencent and LeEco will disrupt things. - Valuation Screen - Risk Screen . Robotics: HollySys (Buy), Estun (Avoid) and Siasun (Avoid) are the . Stock Watch List domestic leaders, but best to play this theme via the Japanese parts . Private companies makers: Harmonic Drive, Keyence, Nachi-Fujikoshi, Omron and Daihen.
    [Show full text]
  • Current Status of the Integrated Circuit Industry in China
    J. Microelectron. Manuf. 3, 20030203 (2020) doi: 10.33079/jomm.20030203 Editorial Introduction: China's IC industry has been flourishing in recent years, huge market demand together with government investments are the major driving forces for this development. The status and development momentum of the Chinese IC industry also attracted wide interest and attention of international counterparts. A group of domestic IC experts are invited by the JoMM to write a series of articles about China's IC industry, including the history, current status, development, and related government policies. Information in these articles is all from public data from recent years. The purpose of these articles is to enhance mutual understanding between the Chinese domestic IC industry and international IC ecosystem. Current Status of the Integrated Circuit Industry in China ― Overview of the Memory Industry 1. Status of China's Memory Market products, China has a huge demand for memory chips. According to data released by the General In the past years, the Chinese memory chip Administration of Customs of China [2], the total cost market has been occupied by foreign manufacturers. of imported integrated circuits in China reached According to TrendForce statistics [1], the top five 312.058 billion dollars throughout 2018. Among them, global NAND Flash in Q4 2019 are by Samsung the number of memory imports was as high as (36.6%), Kioxia (18.9%), Western Digital (14.2%), 123.083 billion dollars (imports increased by 1188.99% Micron Technology (12.1%) and SK Hynix (9.7%). year-on-year), accounting for 39.4% of total imports.
    [Show full text]
  • Semiconductors: U.S. Industry, Global Competition, and Federal Policy
    Semiconductors: U.S. Industry, Global Competition, and Federal Policy October 26, 2020 Congressional Research Service https://crsreports.congress.gov R46581 SUMMARY R46581 Semiconductors: U.S. Industry, Global October 26, 2020 Competition, and Federal Policy Michaela D. Platzer Semiconductors, tiny electronic devices based primarily on silicon or germanium, enable nearly Specialist in Industrial all industrial activities, including systems that undergird U.S. technological competitiveness and Organization and Business national security. Many policymakers see U.S. strength in semiconductor technology and fabrication as vital to U.S. economic and national security interests. The U.S. semiconductor John F. Sargent Jr. industry dominates many parts of the semiconductor supply chain, such as chip design. Specialist in Science and Semiconductors are also a top U.S. export. Semiconductor design and manufacturing is a global Technology Policy enterprise with materials, design, fabrication, assembly, testing, and packaging operating across national borders. Six U.S.-headquartered or foreign-owned semiconductor companies currently operate 20 fabrication facilities, or fabs, in the United States. In 2019, U.S.-based semiconductor Karen M. Sutter manufacturing directly employed 184,600 workers at an average wage of $166,400. Specialist in Asian Trade and Finance Some U.S.-headquartered semiconductor firms that design and manufacture in the United States also have built fabrication facilities overseas. Similarly, U.S.-headquartered design firms that do not own or operate their own fabrication facilities contract with foreign firms located overseas to manufacture their designs. Much of this overseas capacity is in Taiwan, South Korea, and Japan, and increasingly in China. Some Members of Congress and other policymakers are concerned that only a small share of the world’s most advanced semiconductor fabrication production capacity is in the United States.
    [Show full text]
  • A Neo-Developmentalist Approach to Chinese Semiconductor Industry1
    International Journal of Applied Business and Economic Research ISSN : 0972-7302 available at http: www.serialsjournal.com „ Serials Publications Pvt. Ltd. Volume 15 • Number 14 • 2017 A Neo-Developmentalist Approach to Chinese Semiconductor Industry1 Hyun Suk Cho2, Eunmi Lee3 and Dongwook Kim4 1This work was supported by the National Research Foundation of Korea Grant funded by the Korean Government. (NRF-2014S1A3A2044645). 2Professor, Department of Public Administration, Seoul National University of Science & Technology 3Corresponding Author, Ph.D Researcher, Seoul National University of Science & Technology 4Co-Author, Professor, Graduate School of Public Administration, Seoul National University ABSTRACT China’s recent ambitious plan to develop cutting-edge semiconductor technology and industry was mainly led by Chinese government. Why, in China, does the central government continue to play a large role in semiconductor development policy? For answering the research question, this study suggests two points. One is that Chinese nationalist ideology is embedded in industrial policy making system in strategic industries like semiconductor technology. Based on the ideology, building indigenous and self-sufficient innovation become overarching policy goals. The other is that IC sectors are considered to belong to critical military technology in the context of global competition between China and the United States in economic and military terms. Among various IT sectors, semiconductor sector is selected as the subject matter. It can be argued that the neo-developmentalism properly can explain China’s active IC development policy. The research tries to analyses China’s IT industry from neo-developmentalist approach. Due to the top-down implementation, China’s government continues to retain control over the selection of priority sectors, technologies and areas of public development.
    [Show full text]
  • Chinese Innovation China’S Technology Future and What It Means for Silicon Valley
    Chinese Innovation China’s Technology Future and What It Means for Silicon Valley November 2017 Acknowledgments This report was prepared by Sean Randolph, Senior Director at the Bay Area Council Economic Institute. Alice Bishop, Research Analyst at the Economic Institute, and Sebastian Hamirani, an intern from California Polytechnic State University–San Luis Obispo, contributed to the research. The Economic Institute wishes to thank the sponsors of this project, whose support enabled its development; its advisers, who provided early guidance and reviewed its working draft; and the many contributors who provided information and insight. About the Institute Since 1990, the Bay Area Council Economic Institute has been the leading think tank focused on the economic and policy issues facing the San Francisco/Silicon Valley Bay Area, one of the most dynamic regions in the United States and the world’s leading center for technology and innovation. A valued forum for stakeholder engagement and a respected source of information and fact-based analysis, the Institute is a trusted partner and adviser to both business leaders and government officials. Through its economic and policy research and its many partnerships, the Institute addresses major factors impacting the competitiveness, economic development and quality of life of the region and the state, including infrastructure, globalization, science and technology, and health policy. It is guided by a Board of Trustees drawn from influential leaders in the corporate, academic, non-profit, and government sectors. The Institute is housed at and supported by the Bay Area Council, a public policy organization that includes hundreds of the region’s largest employers and is committed to keeping the Bay Area the world’s most competitive economy and best place to live.
    [Show full text]
  • Global M&A and the Development of the IC Industry Ecosystem In
    sustainability Article Global M&A and the Development of the IC Industry Ecosystem in China: What Can We Learn from the Case of Tsinghua Unigroup? Yunhao Feng , Jinxi Wu * and Peng He School of Social Sciences, Tsinghua University, Beijing 100084, China; [email protected] (Y.F.); [email protected] (P.H.) * Correspondence: [email protected]; Tel.: +86-010-6279-8443-235 Received: 12 September 2018; Accepted: 20 December 2018; Published: 25 December 2018 Abstract: The integrated circuit (IC) industry is the foundation of the information industry, and its level of development is an important manifestation of the economic and technological strength of a country. At present, the IC industry is primarily monopolised by developed countries. Although China is the world’s largest consumer of semiconductors, it has a disproportionately small international market share of production and a very low domestic chip self-sufficiency rate, lagging far behind Europe, the United States, Japan, and South Korea. The process of promoting the development of China’s IC industry ecosystem is discussed based on a case study of Tsinghua Unigroup and the observation and analysis of its recent international mergers and acquisitions. The resulting conclusions suggest valuable mechanisms that could benefit the technological improvement of late-developing countries and help them close the gap with more developed countries. Relevant theory for the industrial ecosystem is enriched, providing a useful reference for the development of the IC industry in late-developing countries. Keywords: IC industry; innovation ecosystem; catch-up; M&A; Tsinghua Unigroup 1. Introduction The integrated circuit (IC) industry is the foundation of the information industry, and its level of development is an important manifestation of the economic and technological strength of a country.
    [Show full text]
  • Pdf/ 13-298 7Lh8.Pdf
    CIGI Papers No. 239 — March 2020 Beyond “Forced” Technology Transfers Analysis of and Recommendations on Intangible Economy Governance in China Anton Malkin CIGI Papers No. 239 — March 2020 Beyond “Forced” Technology Transfers Analysis of and Recommendations on Intangible Economy Governance in China Anton Malkin About CIGI Credits The Centre for International Governance Innovation (CIGI) is an independent, non- Director, Global Economy Robert Fay partisan think tank whose peer-reviewed research and trusted analysis influence Program Manager Heather McNorgan policy makers to innovate. Our global network of multidisciplinary researchers and strategic partnerships provide policy solutions for the digital era with one goal: to Publications Editor Lynn Schellenberg improve people’s lives everywhere. Headquartered in Waterloo, Canada, CIGI Graphic Designer Sami Chouhdary has received support from the Government of Canada, the Government of Ontario and founder Jim Balsillie. VISION CIGI is an internationally recognized think tank that addresses significant global issues at the intersection of technology and international governance. MISSION CIGI builds bridges from knowledge to power by conducting world-leading research and analysis to offer innovative policy solutions for the digital era. À propos du CIGI Le Centre pour l’innovation dans la gouvernance internationale (CIGI) est un groupe de réflexion indépendant et non partisan dont les recherches homologuées par des pairs et les analyses fiables incitent les décideurs à innover. Grâce à son réseau mondial de chercheurs pluridisciplinaires et de partenariats stratégiques, le CIGI offre des solutions politiques adaptées à l’ère numérique dans le seul but d’améliorer la vie des gens du monde entier. Le CIGI, dont le siège central se trouve à Waterloo, au Canada, bénéficie du soutien du gouvernement du Canada, du gouvernement de l’Ontario et de son fondateur, Jim Balsillie.
    [Show full text]
  • Is China's Innovation a Threat to the South Korea-China Economic Relationship?
    Is China’s Innovation a Threat to the South Korea-China Economic Relationship? Wonho Yeon 262 | Joint U.S.-Korea Academic Studies This paper reviews China’s technological rise and assesses whether it poses a threat to the South Korean economy. In terms of comparative advantage between the two countries, many experts have long believed that China’s strength is low-cost labor and Korea’s is technology and capital. However, this has changed as China’s economy grows. Now China has enough capital to invest in its economy. Some scholars even argue that China has the potential to meet its “innovation imperative” and emerge as a driving force in innovation on a global level.1 This paper examines the Korea-China economic relationship from the innovation productivity perspective, organized into sections: briefly introducing the Korea- China economic relationship; describing the technological rise of China, based on recent data; developing the model to analyze the innovation productivity of China and report the estimation results; evaluating the concern of the South Korean semiconductor industry; and presenting conclusions. Korea-China Economic Cooperation and the Necessity for a New Relationship Despite fewer than 30 years of formal diplomatic relations, Korea-China relations have dramatically deepened in various dimensions including diplomatic, economic, and social relationships due to geographical proximity, the mutually supportive structure of the two economies, and historical and cultural ties. The two established a formal diplomatic relationship on August 24, 1992. In 1998, they upgraded their relationship to a “collaborative partnership for the 21st century,” and it further developed into a “comprehensive partnership” in 2003.
    [Show full text]
  • Hanwha Techwin
    Hoping for a stronger year Monthly InsighT 12 2015 Wonjae Park +822-768-3372 [email protected] Jonathan Hwang +822-768-4140 [email protected] Young Ryu +822-768-4138 [email protected] [email protected] Joon-ho Jang +822-768-3241 [email protected] Chul-joong Kim +822-768-4162 [email protected] Contents I. Key charts ....................................................................... 3 II. Investment strategy .......................................................... 4 III. Sector view ..................................................................... 9 IV. Think big .......................................................................... 17 V. Global IT navigation ......................................................... 25 VI. Key global peers ........................................................... 28 Spotlight stocks & other notable stocks ........................... 42 Monthly InsighT 2 I. Key charts Share performances & OP consensus revision rates PC DRAM (DDR3 4Gb 1,600MHz) spot and contract Semiconductor equipment book-to-bill ratios for the for Korean IT large caps (1M) prices have sharply decreased US and Japan (%) Share performance (1M, L) (%) (US$)Spread (R) Spot price (L) (%) US semiconductor 4Q15 OP consensus revision rate (R) Japan semiconductor 5 Contract price (L) 30 3.0 20 12.2 34.8 10 Japan display 2.5 October: 4 20 US semiconductor 0.98 10 5 2.0 Japan semiconductor 0.72 Japan display 1.87 3 10 1.5 0 0 - 1.0 2 0 -10 -5 0.5 1 -10 0.0 1/14 7/14 1/15 7/15 2012 2013 2014 2015 Source: WISEfn,
    [Show full text]