Why We Need More Chip Startups

There's growing concern that the US is losing pace in semiconductor startups (although we've seen intriguing outliers leveraging crowd-funding to make products).

Cadence CEO Lip-Bu Tan

Cadence CEO Lip-Bu Tan

Rick Merritt at EE Times, in a recent piece, quoted Cadence CEO Lip-Bu Tan as framing a more dire situation than most have suspected.

According to Merritt:

China and India are pouring money into semiconductors and “the U.S. government should do the same,” said Tan. If it doesn't, some day U.S. engineers “will have to go to China to work, and its painful to see your kids go to the other side of the world,” he said.

“If the VC trend is not reversed, innovation will be threatened, so it's important to see more startups funded,” said Tan. “The China and India governments are making semiconductors a strategy industry, but I would hate to see those countries have the most semiconductor companies.”

Tan knows of what he speaks: He's an ex-venture capitalist.

Here's Merritt’s complete take on the situation.

This article was originally published on EBN's sister publication Drive for Innovation .

4 comments on “Why We Need More Chip Startups

  1. Himanshugupta
    March 31, 2014

    I was hoping to read some kind of “GYAAN” or knowledge on the startups but i was very disappointed to find out that hardwork is not valued. If you are aware of statistics then most of the US companies are sucessful today because of Indian and Chinese and they have left their homes too to go to the other side of the world.

  2. Nemos
    March 31, 2014

    “to find out that hardwork is not valued.” What do you mean by that, could you be more specific, do you agree or not with the main idea of his speech? .

  3. Wale Bakare
    March 31, 2014

    With the trend in hardware business today – IBM and others moving away to other areas. Are the VCs and Angel Investors ready or would they be willing to invest in chip startups at present times? If not now, when would the sector be more attractive to them?

  4. Himanshugupta
    March 31, 2014

    @Nemos, it does not matter whether i agree with his idea of asking US government to spend more on tech by creating scare that one day ppl from West will have to go to East for their daily bread and butter. My only concern is that by saying so he is creating a wrong impression about the Eastern countries, culture and people in general. 

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