China plans to invest more than $100 billion, by 100 billion to become the world's chip industry leader. The world's most successful and most innovative semiconductor business leaders are starting to think positive, should with the challenge of how to deal with this, and seize the resulting opportunities. However, questions remain: whether China is chasing an unrealistic goal? Whether China can successfully become a global semiconductor eldest brother?
According to the latest research of bain & company found that by 2020, nearly 55% of the global memory, logic and analog chips will flow or flows through China. But only 15% of the world's semiconductor manufacturer at present in China. Although this number is already more than a few years ago have risen nearly 10%, but the semiconductor trade deficit remains China's largest project, even more than the oil, China is still a long long way to go in to solve the imbalance of supply and demand.
"China's goal is to produce more of the microprocessor and memory chip, thus improve the domestic consumer electronic equipment and industrial equipment of chip self-making ratio, meet the demand of domestic consumption and export." Bain global partner Kevin m he (Kevin Meehan) said, "but the financial investment and long-term patience is not enough to fight for the leadership of the global semiconductor industry. If you want to shorten the gap, China must shoulder cooperation with global giants."
A number of different market entry strategies in China, but on the whole, China is trying to control demand, and get the key to intellectual property rights, so as to improve competitive position. In the semiconductor industry, however, quality, technology, value and brand is the key to market leadership.
Want to become a global semiconductor market leader, the Chinese manufacturers must catch up with foreign manufacturers in technology and the production cost. But the market for basic requires a high degree of intellectual property rights, and continuous innovation, even the most solid company funds, the difficulty of entering the market is very big also. And chip giant also not willing to share with China or any other areas of potential competitors core knowledge of products.
Such a high market access threshold means China is likely to cooperate with the existing semiconductor company. Mergers and acquisitions in the semiconductor industry in China continued to rise also reflects the trend. Bain analysis found that the amount of mergers and acquisitions in China last year climbed to nearly $10 billion, but the market has yet to reach the most advanced technology.
For global semiconductor companies, the impact of China's move to market may not allow to ignore. In the changing competitive environment, they can adopt the method based on scenario forecast China's potential action and take responsive measures. At the same time, look for opportunities to invest in China market, expand its territory, in the disadvantage of niche business with Chinese manufacturers to cooperate, to help expand the market leader in favor. Considering the cultivating ability of semiconductor time-consuming long, choosing the right partners, is more important than to get ahead in the niche business advantage.
And China's semiconductor manufacturers face different opportunities, they should pay more attention to explore cooperation opportunities, find a foothold in the market, to lay a solid foundation for success:
, through the natural growth is almost impossible to accomplish the desired scale challenges, so Chinese manufacturers should actively seek cooperation (typically find has a strong intellectual property market follower, these companies will benefit from the strong cooperation of money, and easier to enter the Chinese market), at the same time pay attention to those who wish to exit the market both at home and abroad of semiconductor industry or firm enterprise, for take a chance.
, the level of cooperation, the Chinese manufacturers should pay attention to win-win cooperation with the multinational companies, joint development, adjustment and production technology for Chinese ecological system, the cost is lower than that of the pure competition or transfer of intellectual property strategy is more effective.
, in addition, the Chinese manufacturers should also be targeted lock acquisitions, to build capacity and win the talent. By actively deal with regulation and intellectual property rights, to carry out the effective integration after the merger plans, they will be able to ensure the successful m&a deal, retain talent. Semiconductor this market is little, m&a failure can reduce the success rate of m&a in the future.
, from the strategic point of view, focusing on strategy rather than broad or universally applicable methods are more likely to succeed. Successful companies will be strategic focus in China's market supply and demand gap, specific areas leading position with the market demand, at the same time after the key strategy of the Chinese government and incentive policy. As China's market has evolved and rapid growth, become the leader of a particular field will lead to sustainable value in return.
"There is no denying the fact that China with broad market, strong financial resources and economic goal of persistent patience, will encourage multinational companies to take a clear strategic cooperation with China's semiconductor manufacturers, while the latter by actively explore cooperation may, grasps the m&a opportunities, to carry out the focus strategy, gain a foothold in the market." Bain Liu Yuan global partners, said "with the development of the market, the competition of upgrade, those moments attention to implement a correct understand industry trends, and the corresponding strategy of enterprises to succeed."
