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Working Toward a Truly Borderless Semiconductor Business

Charlie Cheng, CEO, Kilopass Technology, Inc.

From its inception, the semiconductor industry has, on average, grown much faster than the global gross domestic product (GDP). Since 1987, when semiconductor growth and global GDP growth started to correlate strongly, the industry has delivered innovation, convenience and capability far exceeding any other innovation, and in doing so grown the business to nearly $300 billion per year. But in the past decade, despite the most prosperous growth in human history, measured simply by global GDP increase; semiconductor industry revenue has not been able to keep up with the society it serves. The interesting and critical issue isn't which region will take up the larger share of this $300 billion, but how we can break down the regional barriers and mindset to grow the semiconductor industry to $400 billion per year.

Globalization as a Necessity

First, let's try to illustrate the need for globalization, besides the fact that oscillating around $300 billion isn't a viable business. Around the globe, all bemoan the problems of flat lining growth, competitive pressure and issues of scale. But each region has its own unique, specific issues. The United States sees a hollowing of capital and human resources to mobile/online media; Japan sees a need for a structural change in its industry; Taiwan sees lack of roadmap clarity for its execution machines; China still struggles to convert "homefield" advantage into growth; and Israel sees promising start-ups mostly turn into subsidiaries of multi-nationals. The fact that each region has its distinctive view of challenges suggests that each region possesses its own strengths, focuses on different areas of the market/ value-chain and is vulnerable to its own region-specific issues.

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China's Semiconductor Industry Continues to be a Bright Spot in the Global Economy

Dr. Zhihong Liu, Executive Chairman, ProPlus Design Solutions, Inc.

Over the past several years, the Chinese central government has created a favorable business environment to enable the growth of the semiconductor industry in China. That support was on full display this past October during the 10th China International Semiconductor Exhibition and Forum (IC China 2012), a forum for industry exchange and international cooperation on the development of China's semiconductor industry. More than 200 exhibitors spanning the entire industrial chain participated in this vibrant, three-day event hosted by the China Semiconductor Industry Association (CSIA).

This has been an important year for the Chinese Semiconductor Industry. The implementation of the National Economic and Social Development 12th Five-Year Plan and the State Council's decision to accelerate the development of new strategic industries has helped make China the largest semiconductor market in the world, and its consumption of semiconductors the highest worldwide.

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PDF Version
GSA Forum: Vol. 16 No. 4 December 2009
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President & Managing Principal

Stephen Rothrock

Over the past several years, the constantly changing semiconductor industry has experienced major turning points of change and innovation. In my interview with Stephen Rothrock, President & Managing Principal of ATREG, we discussed which ongoing issues in our global industry need the most attention today; how the services ATREG offers can benefit semiconductor companies; what the future of the semiconductor industry will look like; and much more.

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