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PJames
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re: Is China's fabless model sustainable?
PJames   6/20/2012 2:16:38 AM
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Certainly our semiconductor industry has benefited hugely from government involvement over the years... both support at the basic science/engineering level through funding at universities and national labs as well as huge involvement under the guise of defense which not only subsidized industries/technologies but often developed the basic business models and common platforms. The fabless model itself has its roots in MOSIS which was government funded. Many of the structured techniques of VLSI design and EDA flows came from government funded efforts. Neither here nor in China is a "dear leader" trying to dictate what the next angry birds app will be, but looking around the world, government policies and support have been hugely influential in the success of high tech companies. That is not, however, an argument that governments cannot also do harm with bad policies or by trying to circumvent or defy free markets rather than support them.

Bert22306
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CEO
re: Is China's fabless model sustainable?
Bert22306   6/20/2012 1:26:59 AM
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Yeah, truly, it must have been a miracle that companies like IBM, GE, Ford, GM, Goodyear, Microsft, Apple, etc. etc. ever became world leaders at anything. We know better now. We need a "dear leader" to guide us.

PHW_#1
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re: Is China's fabless model sustainable?
PHW_#1   6/20/2012 1:18:28 AM
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Junko, If you have chance to probe the hiring part, it will be good to offer all US engineers an alternative choice. My personal experience, the salary (total compensation like bonus & stocks, not just salary) is not lower than US companies in Asia, but it is a really hard work. Tons of start-up people try to make their product work and make the company successful. Open our mind and embrace the new world and new opportunity. We can't count on government to help creating jobs in US, at least, make ourself available to the whole world.

PJames
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re: Is China's fabless model sustainable?
PJames   6/20/2012 1:16:52 AM
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Quick... someone needs to tell them that Libertarian principles dictate that their success is an illusion. South Korea as well. Obviously Samsung is a house of cards about to crumble due to the level of government industrial policy over the years in South Korea.

ibm221
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re: Is China's fabless model sustainable?
ibm221   6/20/2012 12:19:39 AM
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so the next trend Junko might want to take note is how those chinese semis are picking up moral values these years. ie. smic is copycating mostly TI's ethics, HW should have some moral as well.. oh no, maybe Junko is not good at writing about ethic/moral topics...

ibm221
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re: Is China's fabless model sustainable?
ibm221   6/20/2012 12:16:57 AM
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good one, it's a jungle there...

Marketing Guru
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re: Is China's fabless model sustainable?
Marketing Guru   6/19/2012 11:50:01 PM
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Junko, My comment may link to another story you recently did on China.... Just today we had a Chinese customer here to inquire about having us do 2 ASIC chips for them. We were honest and told them they could probably get it done in China for a lot less. When we asked, "why us?", their answer was a straight forward "because you won't steal our idea." It will be interesting to see how it all pans out (no pun intended).

rick merritt
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Author
re: Is China's fabless model sustainable?
rick merritt   6/19/2012 8:29:48 PM
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GigaDevices. I love it when I hear a name for the first time. Piques my curiosity. I liked Pan's history, too, but I have heard about some bumps along this path post IPOs as well. More stories to tell!

DMcCunney
User Rank
CEO
re: Is China's fabless model sustainable?
DMcCunney   6/19/2012 8:26:09 PM
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"[Chinese fabless companies] are too big to be small, but too small to be big." In other words, "If they can’t continue to grow, evolving into firms that dramatically change their marketplace or define a new category, they have to either stay small or sell to a larger company. Otherwise, they are going out of business within the next two years." It sounds like China will recapitulate the US market, for the same reasons. One thing that occurred to me in watching many US startups was that were I them, my business plan might just be "Establish myself as a competitor with a compelling technology, and position myself to be acquired by a bigger, better heeled outfit that would find it easier to buy me than to develop the capacity in-house to do what I do." Growing big enough, fast enough, by myself to remain independent and compete and compete might just not be possible. I expect to see such acquisitions taking place in China in the not too distant future.

Bert22306
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CEO
re: Is China's fabless model sustainable?
Bert22306   6/19/2012 8:07:16 PM
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I dunno, Junko. There's no doubt in my mind that a country with a population of 1.2 billion people can compete in just about anything they please. My only question is, why did it take "Policy 18" from the central government to get anywhere? I shudder to think that there are people here, in the West, who will take from this that we must also wish for our governments to write our own "Policy 18s" for us. As of now, the way they are apparently growing is what our labor union leaders here would term "on the backs of the workers." Hence the long work weeks and the dorm lifestyles. There's no such thing as a free lunch. One thing too. My reaction to news sources that perpetually lack an element of self-criticism is disbelief. This struck me during the Beijing Olympics, actually.

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