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Is China's fabless model sustainable?

6/19/2012 01:11 PM EDT
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junko.yoshida
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re: Is China's fabless model sustainable?
junko.yoshida   6/20/2012 2:39:33 PM
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I am not saying that this is the case for everyone, of course. But it is also true that a lot of Chinese fabless companies today are being run by those "returnees."

timbroadfoot
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re: Is China's fabless model sustainable?
timbroadfoot   6/20/2012 12:57:54 PM
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This is interesting stuff. I am relatively new to the Asia market. All this comment is really helping, keep it up! Thanks Tim www.slaters-electricals.com

mmmmh
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re: Is China's fabless model sustainable?
mmmmh   6/20/2012 11:40:58 AM
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Regarding the point "like many other China fabless executives today who were born in China and came to the United States for graduate degrees, before going home again to help nurture the Chinese industry." At least it is not 100% true. I think there are quite a few graduate back China as enforced to leave the western country where they pursued the degree. For example, the recent policy change made by home office in the UK has tightened the visa requirement for them.

HS_SemiPro
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re: Is China's fabless model sustainable?
HS_SemiPro   6/20/2012 6:15:58 AM
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I would like to see some New Technology or Design Platform coming out of China, Most of the news is about making existing IP/design made cheaper in China. However, Chinese Engineers in USA, generate lot of research and new IP & technologies. Something has to be said about Chinese work atmosphere.

junko.yoshida
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re: Is China's fabless model sustainable?
junko.yoshida   6/20/2012 5:50:53 AM
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Definitely a lot of bumps along the way, and Chinese companies are learning hard lessons. It would be really interesting to watch where all these China's hot fabless companies will be in five years from now. The landscape may be entirely different.

junko.yoshida
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re: Is China's fabless model sustainable?
junko.yoshida   6/20/2012 4:49:56 AM
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I agree, PJames. In any early stage of industrialization in any nation, it did take the government's will to start up something big. But of course, that requires matching talent and enthusasim by the local people.

junko.yoshida
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re: Is China's fabless model sustainable?
junko.yoshida   6/20/2012 4:48:09 AM
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The government subsidy is a big issue in China as well. You don't necessarily want to be too close to the government, but you don't want to ignore it either. It's a matter of balance; and you need to be smart about dealing with the government and its money -- which is true anywhere in the world.

junko.yoshida
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re: Is China's fabless model sustainable?
junko.yoshida   6/20/2012 4:46:25 AM
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Agree. I will definitely work on the hiring issues. While it is true that the cost of a design engineer is undoubtedly rising in China (especially in a concentrated city area), one guy told me that the salary for middle management jobs in China, like vice president of engineering, for example, has been stabilized in the last few years.

junko.yoshida
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re: Is China's fabless model sustainable?
junko.yoshida   6/20/2012 4:42:33 AM
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That's a great anecdote, Marketing Gurue. Thanks for sharing. The fact that this is what your Chinese customer told you does tell us something. The more they create their own IPs, the more they are concerned about protecting them.

junko.yoshida
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re: Is China's fabless model sustainable?
junko.yoshida   6/20/2012 4:37:44 AM
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To an extent, such acquisiions have begun taking place. Look no further than some of the acquisitions Spreadtrum has been making. And I do believe it's the key to success for China's fabless companies.

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