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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (4406)	2/14/2005 7:40:26 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

China moves on standards Florence Chong FEBRUARY 15, 2005 CHINA has adopted an aggressive posture on standards for semiconductors, which could present Western manufacturers with a problem. A report by the technology forecast unit of PricewaterhouseCoopers says Asian governments have moved to address the issue of high royalties that mainly benefit Western companies. It says China, in particular, has taken steps to establish its own standards, some of which would not be successful. Even so, China would continue to try to influence standards. Standard-setting efforts by the Chinese government would be difficult to ignore, the report says. Companies that have invested research and development capital in standards would have to modify their own strategies in response, it says. Large integrated device manufacturers have the wherewithal to invest early in product development areas in China. Smaller semiconductor companies may have the opportunity to partner with local companies that have obtained licences on favourable terms. Companies should be selective about these opportunities, and consider the drain on resources that standards developments can have, the report says. "Only a few of the many standards being developed will be widley adopted," it says. PwC also says the first phase of China's semiconductor development will end, possibly after 2010. By then, China could have a critical mass of 12-inch (300mm), 90nm or better capability. "At that point, China could have the semiconductor production capabilities of Taiwan, Singapore and Korea combined." Of all the industry participants in China, foundries have been the most aggressive in pursuing 12-inch, 90nm production capability, the report says. australianit.news.com.au