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Study sees emergence of China's fabless industry
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Study sees emergence of China's fabless industry
By George Leopold, EE Times
March 7, 2003 (2:32 p.m. EST)
URL: http://www.eetimes.com/story/OEG20030307S0021
WASHINGTON — China's "long march" to create a fabless IC infrastructure will require the rapid introduction of home-grown design technology with commercial IP, according to a new study of China's semiconductor industry. The survey of Chinese IC design companies by market researchers iSuppli Corp. (El Segundo, Calif.) concludes that after years of reliance on a "reverse engineering" design methodology, Chinese fabless companies have broken through in areas like smart card ICs, communications ASICs and even 32- and 64-bit CPUs. Other hurdles Chinese designers must overcome during the next phase of development include producing designs with quality comparable to its foreign rivals and lowering costs through the use of local and international fabs. Among the report's other findings: The report noted that China's membership in the World Trade Organization means there's no immediate need for integrated device manufacturers to move operations to China in order to reduce costs. However, the authors warn that overseas companies must continue to keep close tabs on intellectual property since some local fabless firms continue to reverse engineer products.
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