“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.
First person to comment that isn't trying to sell sunglasses and handbags! I am actually more positive that this will happen than some of these folks on the panel. That said, I see the growth of the China semiconductor industry as being somewhat different to that of TI. Several companies are aligning to key OEMs in China first, developing a solution there and then rolling that out more broadly across the world. Granted, it is still early, but if those companies are committed to listening to the feedback from those companies (i.e. developing stronger strategic and marketing skills), then they will succeed. If you look at the system level, Huawei went from nothing to being a significant $30B force worldwide (with limited engagement in the US market for well covered reasons). There is no reason why this cannot happen at the semiconductor level too.
I too think this will happen as there is a political will behind it. The Chinese Government is pending huge money on R&D, and this will pay off in the mid to long term, I believe. That said, they should aim higher than TI IMHO.
The development of semi-conductor industry in China has gone a really fast pace. With the concentration of foundry companies, the relevant R&D activity will move in a reasonably fast pace. Who knows when the next TI is born in China. The likelihood is the next semiconductor R&D company born in China is not going to be the same kind as TI is.
The Chinese are very good at copying and replicating inexpesive devices, but can anyone name one "China" exclisive device that had not already been designed and developed else where?
Creating a climate of innovation requires a management thought process willing to take losses for unsuccessful new devices. The Chinese punish failure. Until they change, they will never reach the levels of innovation and product process of a TI.
Just my opinion.
Indeed, the Chinese government offers some financial support, but many startups I talked to here in China aren't getting that big an incentive from the government.
Sure, in the end, the government's support in growing companies (like Huawei and ZTE) could make a difference, but I think the struggle Chinese fabless companies face now is that they need to figure out by themselves how to get over the first hump -- from a run-of-the-mill small startup to be a slightly bigger player with global recognition.
The same could have been said of Japan in the 1950's; they just copied transistor radios designed in the west. But then came giants like Sony and Toshiba. What may come out of China will look nothing like TI, but I'm sure a giant will come.
No. 8: all chinese experts sucks.
I read through all the items , if that's all these experts could imagine, they are idiots.
No. 9. the true reason, chinese so far lacks trust and common value in general.
when you put 3-5 capable chinese VPs together, they .. wont cooperate, they will fight. that's the biggest difference between TI and most of chinese companies. and that 's what's keeping them under.
like SMICs big internal warfare last year, it ended up with a group of taiwan top management take over. The chinese top dog ie simon yang etc are just morally incapable of staying in such kind of position.
TI's real foundation and secret sauce is .. . sourthern baptist church, that's how to keep people trust one another and won't leave the game if they don' t like their PPI...
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.