China Opportunities and Challenges
Handel Jones
FOUNDER AND CEO
IBS, Inc.
Abstract
The semiconductor industry is entering a new age. China is committed to supply up to 40% of the total consumption in China by 2025, which means revenues of Chinese semiconductor companies will be $134B compared to $17B in 2015. To achieve this goal, there is the need for access to a wide range of IP, the ability to develop complex semiconductor products, and building up the full supply chain (includes wafer fabrication, packaging, and testing). It is likely that there will be acquisitions of U.S. and European semiconductor companies, and joint ventures will be established.
Governments, financial institutions, and major cities in China are active in stimulating the growth of the electronics industry in China. There has been some success to date, but the growth rate of the semiconductor supply chain in China has been slower than expected. New approaches are expected to accelerate growth.
Europe has to be prepared for the changes that are being implemented in China, which is the evolution from Brawn to Brain (China Daily article by Handel Jones.) There are major competitive threats to Europe along with large market opportunities. While GDP growth in China is slowing, there is also an acceleration into the high technology phase in China.
- 5G: China is attempting global leadership. Investments currently above $2B per year.
- IoT: Increased investments in China. Building of full supply chains including MEMS sensors.
- Automotive electronics: Large investments for building supply chain, including ADAS.
- Other areas: Full supply chain for LED lighting, UHD flat-panel displays, super computers, optical communications (gives access to advanced technologies and manufacturing-intensive industries).
The China of 2020 to 2025 will be very different from the China of 2010 to 2015, and it is important to have good understanding of the key factors for growth in China. Europe can obtain many opportunities from having creative strategies to actively participate in the emerging China.
Biography
Has been in business for over 26 years
Previous experience in managing 1.5K+ engineers at Rockwell International, which included avionics, communications, and semiconductors. Strong emphasis on communications
Interface with most global leaders in electronics industry, with customers in U.S., Europe, South Korea, Japan, Taiwan, China, India, etc
Interface and support for major global corporations such as Intel, Qualcomm, Broadcom, Microsoft, Seagate, Samsung, SK Hynix, Sony, Toshiba, Apple, Cisco, Huawei, IBM, Fujitsu, Canon, Hitachi, Renesas, TSMC, Globalfoundries, SMIC, STMicroelectronics, NXP, TI, ARM, and others
Participated with French Government on their advanced technology initiatives
Interface and support for financial institutions such as Goldman Sachs, Carlyle, Blackstone, CitiGroup, Warburg Pincus, Walden, KKR, Morgan Stanley, Credit Suisse, BNP Paribas, Bain Capital, Bank of America, TPG, and others
Involved with advanced technology concepts, including smartphone, IoT, and other high volume devices. Active in supporting companies in high performance infrastructure applications
Strong expertise in China. Latest book is called China's Globalization (How China Becomes No. 1). Published business book entitled Chinamerica (McGraw Hill)
Forbes blog contributor, China Daily articles, Global Times editorials, Wall Street Journal, and others
Involved in number of due diligence projects on number of IPOs
Support for strategic initiatives for number of global technology leaders