S.Korea's extended reality sector forms industry convergence alliance
Ji-Eun Jeong
Feb 16, 2023 (Gmt+09:00)
The Korea Display Industry Association (KDIA) on Wednesday signed a memorandum of understanding (MOU) on a convergence alliance of the domestic extended reality (XR) industry with the Korea Electronics Association (KEA) and Korea VR-AR Contents Association to form a domestic front and rear ecosystem for XR.
Given global competition among big tech companies to get a head start in the XR ecosystem, the alliance's purpose is to create business opportunities for XR companies through display-centered cooperation among domestic companies in heterogeneous industries such as electronics and content.
The global market for XR devices is expected to see brisk growth of an average 38% per year from 14.3 million units worth $6.9 billion last year to 70.7 million worth $20 billion in 2027.
Under a "unite and scatter based on interests" approach, global tech giants are building their own supply chains ranging from those for semiconductor substrates to others for displays and optical modules.
XR devices are convergence products that require the development of optical modules and content from the design stage, the KDIA said, but the supply chain linking Korea's front and rear industries remains lacking.
Under their MOU, the three organizations will promote activities such as analyses of supply chains and competitiveness, inter-sector cooperation in technology and business, search for joint research and development (R&D) opportunities, and development of infrastructure to create a convergence ecosystem for the XR industry and foster related companies.
"Given the rapidly changing XR market, inter-sectoral convergence and cooperation have never been more important," said KDIA Vice Chairman Lee Dong-wook. "To secure global competitiveness in the XR industry, cooperation with elite industries such as semiconductors remains a task."
"We plan to play a faithful role in the formation of a collaborative system spanning industry, academia, research and government for the development of the domestic XR industry, such as through the inauguration of an XR sector consultative group," said KEA Vice Chairman Park Cheong-won.