An Automotive Fabless Company Aiming to Compete at the Global Stage - CEO Interview

http://www.issuemaker.kr/news/articleView.html?idxno=35148 

Jaehong Park, CEO of BOS Semiconductors

The supply imbalance in semiconductors caused by oversupply and shortages, which began last year, is expected to continue until this year. The market for advanced semiconductors such as memory chips is facing oversupply, while the system IC sector, particularly for automotive semiconductors, is expected to experience prolonged shortages according to industry experts. Car manufacturers are accelerating production to recover from the losses caused by COVID-19, leading to an increased overall demand for semiconductors used in vehicles, making the situation even more challenging. To address this imbalance, attention is shifting towards the advancement of new specialized semiconductor companies in the automotive industry.

The Aim to Develop Automotive Semiconductors with Global Competitiveness

Currently, the average value of automotive semiconductors used in finished vehicles is around $500 per unit, with approximately 300 chips used per vehicle. This estimate is based on gasoline-powered vehicles, while electric vehicles (EVs) require around $1,600 per unit worth of semiconductors, with an estimated usage of around 1,000 chips per vehicle. Autonomous driving vehicles are estimated to require over 2,000 chips per vehicle. Semiconductors are integrated into various components such as powertrains, electronic devices, and in-vehicle infotainment systems, and as a result, automobiles often referred to as "moving electronic devices" or "driving PCs."

Moreover, with the recent addition of advanced electronic equipment like Advanced Driver Assistance Systems (ADAS), the number of semiconductors used in vehicles has increased significantly, surpassing 2,000 chips per vehicle. While the demand for automotive semiconductors is growing exponentially, there are challenges such as low profitability and high entry barriers primarily due to their treatment as components for simple operating control and their lengthy replacement cycles of around 7-10 years. Consequently, forecast of long-term shortages in automotive semiconductors is gaining traction. The South Korean government, through the Ministry of Trade, Industry, and Energy, has expressed its commitment to resolving such shortage of automotive semiconductors by proposing initiatives such as "domestication of design and manufacturing technology" that strive for supply chain stability. However, the direct consequences and results are still difficult to ascertain at this stage. 

In the midst of these circumstances, BOS Semiconductors, an automotive semiconductor fabless startup, has embarked on the development of automotive semiconductors that can compete at the global stage, partnering with Hyundai Motor Company, which has sparked interest and attention in the industry. We had the opportunity to speak with BOS Semiconductor CEO Jaehong Park to hear more about their story. 

- ​Please give a brief introduction of the company.

"Nice to meet you. My name is Park Jae-hong, the CEO of BOS Semiconductors. At BOS, we have assembled the industry's top experts who have experience in the entire automotive semiconductor process, from SoC design to development and production. We are focused on developing system IC based on our technology that will prove essential for high-performance, low-power consuming automotive semiconductors. Our goal is to grow into a global fabless company that designs and develops system ICs optimized for automotive software and its requirements.

As the importance of software in automobiles continues to rise based on inevitable technological trends, the importance of system IC tailored for vehicles is also increasing. In line with this trend, BOS Semiconductors is working on the development of a 'Super SoC' that can integrate all electrical and electronic systems of future cars and implement various mobility functions through software within a single SoC. We are building our technical capabilities in areas such as AD SoC, HPC, and Gateway to achieve this. With this foundation, we aim to grow into a comprehensive system IC company like Qualcomm and MediaTek." 

- Low power consumption and heat dissipation continue to pose challenges for system ICs.

"That's correct. BOS Semiconductors is also dedicated to addressing challenges such as the need for low power consumption and heat dissipation in system ICs. Fortunately, myself and the members of BOS Semiconductors have backgrounds that include the development of chips for mobile phones. In the past, I developed semiconductors at Samsung Electronics, starting from DVD player chipsets and successfully leading the development of various types of mobile and automotive chipsets like Exynos Mobile and Exynos Auto. I also have years of experience in the development and commercialization of semiconductors, including establishing a foundry ecosystem in Korea. Prior to Samsung Electronics, I was involved in CPU design at IBM and EDA software development at Motorola in the United States. Therefore, I can confidently say that we have ample experience and technical expertise in the area of low-power consumption design.

Moreover, as low-power consumption and heat dissipation are inherently related, we have also prepared sufficient experience, knowledge, and mitigation strategies to address heat-related issues. We understand the critical importance of managing power and thermal challenges in system IC design." 

- It was recently the one-year anniversary of the company. Looking back on the past year, what do you anticipate for the next year?

"As we celebrate our first anniversary as a startup, we reflect on the past year as a period of securing the infrastructure, environment, and intellectual property necessary for BOS Semiconductors to develop semiconductors and solidify our foundation as a company. It has been a period of steady progress and taking measured steps forward. Looking ahead to the next year, I believe it will be a year where we move forward at a faster pace. 

We have planned the development of two key products: high-end MCUs (Microcontrollers) and autonomous driving semiconductors. The high-end MCU aims to revolutionize the functionality of MCU semiconductors used in automobiles by enabling a single MCU to handle multiple functions. On the other hand, the autonomous driving semiconductor is an AI chip that will serve as the brain for autonomous driving vehicles. Following these developments, we will embark on the full-scale development of the 'Super SoC' that I mentioned earlier, with the goal of releasing our first product in the second half of 2025 assuming no delay or disruption in our progress." 

- What is your motivation for starting the company?

"Prior to starting BOS Semiconductors, I worked at Samsung Electronics for 23 years, where I developed various types of mobile and automotive semiconductors. In 2021, I was honored with the Order of Science and Technology Merit by the Korean government. As an executive and tech practitioner at a large corporation, I have been actively involved in the market for a long time, which has allowed me to gain a clear understanding of the trends and future direction in the domestic and global fabless industry.

It became evident that without the emergence of competitive fabless companies in the system IC field, South Korea would face difficulties in the overall market where system IC is used. It also became clear to me that achieving balanced growth between memory semiconductors and system IC would be the most powerful weapon to maintain a strong position in the global economy. Therefore, I decided to leverage the experience and networking I gained during my time at Samsung Electronics to establish BOS Semiconductors, with the aim of creating a fabless company capable of competing at a global level." 

- What was the feedback you received from others around you when they found out you were taking on this challenge?

"I did receive a lot of attention with people expressing both concerns and high expectations because it is not common for someone with a background as a vice president of a large corporation to go on and start their own business. However, personally, the entrepreneurial journey felt natural to me. During my time at Samsung Electronics, I had the opportunity to work in both the fabless and foundry fields, and I was heavily involved in creating an ecosystem within the domestic foundry sector. I also led projects to foster various design houses. Through these experiences, I came to believe that a symbiotic relationship between fabless and foundry companies should be established in South Korea. When the right opportunity presented itself, I embarked on entrepreneurship to directly realize my vision." 

- Were there any workplace challenges or disconnects that you faced as you transitioned from an executive at a large company to a startup CEO?

"I have not experienced any disconnect in terms of my work. Even during my time serving as a vice president of a large corporation, I invested a lot of time in hands-on experience and was recognized as one of the individuals who knew best the inner workings of the company. I always strived for personal growth and constantly challenged myself. 

However, entrepreneurship presents many challenges that are independent from being good or bad at the work you are assigned to. Among them, the most difficult and ongoing challenge is managing and hiring 'people.' Specifically, it has been quite challenging to find talent in the system IC sector. Although I expected some difficulties as I was well aware of the industry dynamics, there were many instances where I felt that there is a significant difference from a recruiting standpoint between a large established corporation versus a startup. I believe this will continue to be the biggest obstacle that domestic fabless companies in the system IC field will need to overcome. It requires a combined and systematic effort of cultivating engineering talent at the government level as well as efforts from public and private sectors to revitalize the fabless industry."

- What impact do you expect BOS Semiconductors to have in the wider industry? 

"The system IC industry is of paramount importance to the country's overall industrial and economic standing. Regardless of the type of system being developed, such as mobile phones, automobiles, or data center equipment, system IC is inevitably required. However, if we rely solely on imports for these critical components, it can lead to not only long-term detrimental economic impact but also political and diplomatic issues. Therefore, I firmly believe that the existence of fabless companies with global competitiveness in the system IC sector is a crucial element for securing national competitiveness. If BOS Semiconductors can successfully execute on our mission which is aligned with this perspective, it can have a positive impact on the domestic system IC industry. We can expect to see many aspiring individuals who have witnessed the vision of the system IC industry choosing careers in the fabless sector. This will ultimately provide the foundation for a self-reinforcing cycle in the Korean fabless industry, and I hope that BOS Semiconductors can act as a catalyst for this movement."

- What do you believe is the biggest competitve strength of the company?

"I take pride in our team's accumulated experience, high-level technical expertise, and the ability to encompass various fields. We are leveraging these strengths and technical capabilities to develop an in-house design platform for automotive semiconductors. This platform, called SRAP (Scalable Reconfigurable Automotive SoC Platform), enables efficient development of low-power, high-performance automotive semiconductors that is also equipped with essential functional safety features. It will serve as a powerful tool that provides computing power through reconfigurability, allowing customization and scalability across different domains. This will be the most potent weapon for BOS Semiconductors. It enables the development of system ICs that achieve exceptional efficiency with a minimal number of personnel."

- I understand you are actively reruiting. What type of candidates are you looking to hire?

"By 2025, we plan to expand our workforce to approximately 300 employees. This headcount will ensure the optimal infrastructure for developing robust vehicle-grade system IC. Throughout this process, we hope to attract individuals with a global mindset, who are proactive in finding tasks they can accomplish on their own. Additionally, the field of system IC encompasses various disciplines such as semiconductor processes, devices, transistor and logic design, physical design, computer architecture, software, algorithms, and more. It is like a comprehensive gift set that includes all aspects related to semiconductors and systems. Therefore, we welcome talents who have an interest in diverse fields and possess a broad range of knowledge to join us."

- What is your core approach to leadership?

"Devotion and proactive leadership. I can describe it with these two words. The true essence of leadership has evolved over time, but its essence has never changed. That essence to me is devotion and proactive leadership. Alongside this, I believe that a mindset of consideration and respect for others before oneself and empathy will act as a significant force that enables both myself and my partners to succeed. The growth and success of my partners and colleagues are intertwined with my own growth and success, and this collective growth, in turn, contributes to the growth of our company and, ultimately, the overall economy. Therefore, at BOS Semiconductors, we leverage the strong technical expertise of our members to explore various endeavors and prioritize education to facilitate personal growth."

- Please provide any closing remarks. 

"The goal of BOS Semiconductors is to become a comprehensive system IC company that can compete at the global stage. We are well aware of how challenging this path can be, but we are committed to persevering with a long-term perspective. Of course, we do not wish to walk this path alone. Products need a market to shine in. Therefore, it is essential to secure a market where domestically produced system IC can be used and create an environment where feedback from the market can help improve the products. Currently, the domestic foundry industry requires assistance in these aspects. Direct support from the government for the domestic foundry industry would be greatly beneficial, but indirect support, such as providing incentives to system IC companies to use domestic foundry services, would also be helpful. We hope that the government recognizes the importance of these efforts and continues to provide support until the domestic foundry industry reaches a global level. Rather than short-term support, we hope to engage in discussions on systematic ways to foster the foundry industry together."