Asia is currently more of a customer than a competitor, but competition is rapidly emerging, said participants in a London tech forum sponsored by headhunters Renoir Christian Timbers.

"We see Asia mostly as a sales opportunity," said Doug Dunn, chairman and CEO of lithography tool manufacturers ASML. "Two thirds of our sales go to Asia. Taiwan and Korea are the biggest customers, then either Singapore or China at number three and Japan last," Dunn said.

"Ninety per cent of our revenues come from the Far East, but 30 per cent of the revenues come from design wins in America," observed David Milne, CEO of U.K.-based Wolfson Microelectronics.

Intellectual property protection continues to be a problem, however, when it comes to Asia.. "If you don't want to lose it don't go there," remarked Phil Bishop, CEO of EDA company Celoxica.

Milne agreed. "We are nervous about setting up a design center in China, although we're confident of their ability," he said.

Both men saw the emergence of competition. "From process technology to design flows we see people in China being innovative. They're attempting to leap-frog western companies by investing and by innovating," said Bishop.

"We see some competition but they've always been behind the curve," said Wolfson's Milne. "But there is an incredible number of incredibly bright people, and they are going to be able to design chips in direct competition with us."

And while Asian labor may come cheap, the Far East is catching on to Western white collar ways. Labor cost is said to be generally one-tenth of what it is in the United States, but executive salary inflation is becoming a problem. One delegate said he had to offer a $250,000 salary for a local managing directorship in Shanghai.

By: DocMemory
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