Monday, March 17, 2003
The flood of electronics industry manufacturers seeking a toehold in China is rising, but the number of companies willing to build a truly strong presence there is still small.
Most companies have opened sales offices, and some have even opened manufacturing plants. But the market still has yet to achieve the kind of critical mass necessary to lead companies to increase their commitment to the market.
Canon Inc., for example, has opened a sales office for its steppers in Shanghai, but has no plans to actually create a manufacturing facility, said Hirofumi Sato, manager for business planning in the semiconductor production equipment division.
The situation is much the same at Photronics. Bob Hickman, director of Asian sales at the company, said the market has grown substantially, but it still has a way to go. "As the foundries come up, they will need our equipment," said Hickman.
Robert Akins, chairman and CEO of Cymer, said China has made a strong commitment to semiconductors, but so far less than 12 percent of the companies in China have chips built in China. While that is changing, it may take several more years before the electronics industry achieves critical mass there.
"This is not just about cheap labor and land," said Akins. "You need a very educated work force to run these factories. This is extremely technically demanding."
Most executives interviewed said China is developing those kinds of staffing resources, which is part of a multifaceted plan to win big in this market. And they say the kinds of skills they are turning out are comparable to other geographies within Asia.
Still, getting an industry up and running doesn't happen overnight, no matter how many resources are thrown at a problem. Even with the labor and the money, building an electronics empire in China will take time.
By: DocMemory
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