I am sure China will be successful in its goal of raising domestic chip production quickly because it has the backing of its government. The Chinese government can generally build whatever project it likes because the government owns the land, labor is cheap and protests against the system can not be organized. I feel overall this is good for semiconductor industry because it will bringdown the production costs as well as it will bring diversity to supply-chain model.
I think it will be very interesting to see how quickly China implements its semiconductor manufacturing plans.It’s a very competitive business that requires a great deal of capital expenditure. It’s hard to predict where China’s semiconductor manufacturing sector will be after five years, but the low level of production that they currently have is seen by the Chinese government as unacceptable.
Thanks for reading my article and for your thoughtful comments.
Interesting development but no surprise--it makes a lot of sense. Why ship chips from the US, Europe or elsewhere when they can be manufactured in China and transported within the country? It's another way to save costs. The downside, of course, is the IP--China still has a reputation fro IP theft and piracy. I think that will be a big burden to overcome if China is banking on being the next Taiwan (so to speak)
China will certainly implement its semiconductor manufacturing plans and will be successful at it. It makes economic sense. I'm sure Chinese government will move all to ensure this happens. Whatever the challenges ahead for China, I'm sure the government have got it planned. What happens after five years is anyone's guess.
I think it is about time China took that matter serious. The news about the iPAD2 struck me particularly. with the iPAD2 manufactured exclusively in China, yet, practically every component had to be imported. It would really help their semiconductor industry, however, it don't see china having a world dominance in that area, like they have had in manufacturing outsourcing.
Alot more players are getting into the market, taking their big of the semiconductor slice.
I,m not surprised China is making a move in the area of semiconductor manufacturing. China saw an opportunity and is taking the chance too.No doubt there is so much in it for China, expect to see improvement in the supply chain
It would be interesting to know where the ICs are made for the Chinese fabless designs? Who makes the fake ICs for the gray market? Patents and intellectual properties will be copied for sure. Because of that they may not be able to sell some of the products to Europe or USA. They will have huge domestic market to fulfill instead and our products will not see any part of it. China will do whatever they want to do. The cost of identifying counterfeit products and then legal proceedings will make business in China very difficult. This push for IC manufacturing is quite well planned to fit model of independence. Hopefully this is not going to be as bad as it could.
Low-cost labor,proximity to the largest and fastest-growing markets in the world and other incentives offer compelling reasons to locate chip-production capacity in China or nearby..
China is becoming a robus nation in major investments. Increasing chip production is not an issue for a country that have tasted the the sweetness of the reward of hard labor. Cheap materials and labor will help China. Because it is going to be easy to maximize the profit, and the fact that demand is always there, will encourage China to go for it.
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Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
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