"The Business Week article (27Aug2014) says that China regards Semiconductors as a strategic industry needed for economic development and national security. China will increase financial support for the industry and plans to set up a national investment fund."
Of course it does. Much of China's money comes from exporting electronic goods and therefore Chinese companies are aquiring as much as possible to make a breakthrough entry into the world IC race, especially when the IOT sector is about to boom and China won't be lagging behind.
@Junko: you may have already seen this news, Chinese chip-testing companies Jiangsu Changjiang Electronics Technology Co. and Tianshui Huatian Technology Co. are eyeing StatsChipPAC buyout, close to $1.0B.
The Business Week article (27Aug2014) says that China regards Semiconductors as a strategic industry needed for economic development and national security. China will increase financial support for the industry and plans to set up a national investment fund.
It seems to me that the strategic plan is well beyond orchestration into an implementation phase. The deficit of China is much less than those of western economies including US, it can afford to issue bonds to backup these overseas acquisitions.
Just in time for integration to get more difficult. The ic industry offers no free ride from here on. Maybe this makes it more attractive as a cash cow if you can grab a large enough chunk of it. Hard to tell....
If current policies of China are any indication, opportunities will only be accessible to locals. I don't think it is healthy for the industry!
True. Definitely, these opportunities are for locals and not for foreigners....although we might be working for Chinese-owned companies at one point. And that's precisely why each nation, wihtout necessarily subsribing to protectionism, needs to develop its own industrial policy.
@Junko: Regarding your comment: China has the power to generate the new world order as far as the semiconductor industry is concerned...
I agree that it is only China as of now that can disrupt the existing hegemony of high tech industry of which semiconductor is a prominent one. I do recognize another comment below that says don't make opinions on this topic based on what is China today, a fair one. Unless there are major economic policy shifts toward protectionism in Western economies, it will be most likely China that will own the end-to-end semiconductor industry.
How ever, what discomforts me the most is the lack of opportunities for foreigners to work in China-owned industries in China, in stark contrast to western economies which are more open and welcome talent from any where. If current policies of China are any indication, opportunities will only be accessible to locals. I don't think it is healthy for the industry!
@collion0, I am neither overhyping the story nor underplaying it. I would not go so far as China is "buying the world." That said, if China's investment community can value semiconductor companies more favorably than its US counterpart, yes, China has the power to generate the new world order as far as the semiconductor industry is concerned.
Now, China acquire not only Semidconductor companies in the world, mainly on American and European, but also purchase in other field.
Many Chinese people with much cash travel around world. They purchase nearly all the things without asking price on the way they visit. Many foreingers wonder how the Chinese could have such amazing purchasing ability.
Because the China 's printing cash machines are working all year, even one second stop.
You wrote: I wonder if all of the 200,000 graduates in integrated circuits are working in jobs that matches their technical skills. What I have heard is that a good majority are not.
I tend to agree with you assessment. However, the point here is the very fact that the semiconductor industry is pitched to sutdents in China as a promising industry (as more and more money flowing into the very industry.)
Now, that will make a huge difference, if not now, but in the next 10 years time.
As Nicky Lu told me, Don't judge China by looking at the country today. China seems to have all the elements getting ready now...
As we unveil EE Times’ 2015 Silicon 60 list, journalist & Silicon 60 researcher Peter Clarke hosts a conversation on startups in the electronics industry. Panelists Dan Armbrust (investment firm Silicon Catalyst), Andrew Kau (venture capital firm Walden International), and Stan Boland (successful serial entrepreneur, former CEO of Neul, Icera) join in the live debate.