2. The Chinese are (still) coming
The parallel to the fall of the Japan over the last 30 years has been the rise of China.
One need only at Shenzhen, which hardly existed 30 years ago and today has 11 million people and is the electronics manufacturing center of the world. As stated in my four-part blog series on China
, it’s no secret that there are many more semiconductor startups in China today than anywhere else in world, including Silicon Valley. However, they largely serve the domestic industry by trying to displace foreign-made parts in high volume designs.
How long will it take for these companies to move up the value curve (Innovators Dilemma in action again) and come to the U.S. design market to compete with the big guys?
My take is that the trend is just beginning: We have seen mainland Chinese semi companies starting to appear on our Silicon 60 list and reaching out to us to tell their story (see Active Semi and Union Semi stories). Are these Chinese companies emerging as a real force in the global industry? I saw little evidence of this in 2012, but it’s a trend to watch in 2013.
Experiencing the Chinese supply chain, up close and personal