“Fundamental to mergers is to agree with other companies,” said Luo Yi, CEO of X’ian Semipower Electronic Technology Co. (X’ian). Chinese executives, generally speaking, don’t communicate with other companies with an open mind about the possibility of a mutually beneficial deal. “Except for Huawei, I don’t see many Chinese fabless companies that can pull that off.”
5. They’re not identifying the right segments.
“To beat TI, China has a long way to go,” said Zhang Jin fang, CEO of Chipone (Shenzhen). The most important thing for us is to find the right segments of the market that we should be in, he added. “To identify that strategic market is hard.” So far, what usually happens is that a whole bunch of China fabless firms spot the same opportunity and go after the same or similar market segments en masse. Then, they all try to beat each other on price.
6. They suck at forecasting.
Chinese fabless companies are terrible at forecasting the market demand for their chips. A Chinese market environment that tends to favor the reselling of chips in Hong Kong, for example, creates a broad impression that there’s a chip shortage. The inevitable result is overproduction and an oversupply of chips, thus fueling price competition and a buyer’s market.
7. The "spirit" to match TI is willing, but the substance is weak.
China fabless companies aspire toward TI’s example, but “TI has something special Chinese companies can’t touch,” said X’ian Semipower’s CEO Luo. “TI has the big bucks it takes to invest in the future.” It’s hard for most Chinese companies caught up in today’s market forecast to think five to 10 years into the future. Even if they were tempted to invest for the long-term, they simply don’t have the capital to spare. They either need a sure thing — which is impossible when you’re envisioning scenarios that have yet to develop — or a whole lot more money than they have right now.
Huawei could be China’s TI someday, Luo predicted. But he’s not betting on it.
if you look at chinese IPOs , most of them have 1 founder only, (baidu, huawei, sohu...)
at the same time TI got 4 founders, Intel 3, google 2...
very clear , most chinese don't know /can't find a real partner.
Huawei is not the next TI. It's the next Cisco. Today.
I have been told in both Taiwan and China there is a feeling that everyone wants to be the boss and this gets in the way of the M&A needed to build large companies with broad portfolios that have a deep bench of crack divisional leaders working under on CEO.
@Echo, you are still missing the point, it's not about character, it's about true love, between VPs , between you and your boss.
It's like a real family, the ignorance of many chinese such as you is one of the reason of this situation.
yeah right, I said in general.
what impressed me most in recent years is Richard Chang of SMIC, a TI veteran, 1st CEO of SMIC.
the 1st thing (maybe) when he setup smic is setting up a bible group in his home.
so not all chinese are idiots, they ll learn the tricks as koreans.
Human character can be changed. More and more chinese have an open mind, especially many of them have abroad study or working experience, this will change their way of thinking. And it will change the way which you are thinking..
So.. Don't be too absolute.
Good Part of it is atleast China is attempting or trying to understand what it takes us to become TI or Qualcomm. Sure, some day they have a chance to get there. As they pointed internal co-operation is the key element rather than in fighting and openness in communication with their stake holders.
David Patterson, known for his pioneering research that led to RAID, clusters and more, is part of a team at UC Berkeley that recently made its RISC-V processor architecture an open source hardware offering. We talk with Patterson and one of his colleagues behind the effort about the opportunities they see, what new kinds of designs they hope to enable and what it means for todayís commercial processor giants such as Intel, ARM and Imagination Technologies.