China's semiconductor IC market to attract Silicon Valley venture vision

Professionals believe that the greatest temptation is the high rate of return, the biggest risk is the rapid development of policies and regulations China technology enterprises of the central and local government support design innovation technology enterprise policy, attract overseas venture capital institutions growing interest. In fact, in China technology research and development, the investment community has also played an important role.

China becomes the base of semiconductor integrated circuit

With the rapid development of China electronic manufacturing industry, venture capital institutions of California in the Silicon Valley area has focused on the multinational companies in Chinese set up offshore production base and Chinese itself the enterprise product development and design capabilities. Today, almost all computers, mobile phones, televisions and other electronic devices in the United States market are produced overseas, including china. At present, China has become the main manufacturing base of semiconductor integrated circuits.

According to the statistics of China venture capital institutions, venture capital institutions in 2004 the amount of investment in China's more than and 250 companies have reached nearly $1 billion 300 million, the number of investment projects increased by 43% over the previous year, an increase of $28%. The total amount of semiconductor integrated circuit industry accounted for 1 / 3 of total investment, venture capital is mainly concentrated in the rapid development of integrated circuit design. China's IC manufacturing base in Shanghai has become the focus of overseas venture capital.

High return on investment in China

On behalf of the United States 90% semiconductor companies in the semiconductor industry association chairman George Scalise pointed out that the high rate of return on investment is one of the reasons for the semiconductor industry to China: "if the price structure in both the US and China to do a comparison can be seen in the two investment returns are different. 350 million years of technology investment in China within the return of more than $1 billion in the United States more than $10."

Silicon Valley Mobius venture capital company executive Gary Rissel said Silicon Valley investment professionals are looking for those who have created innovative products, own brands the ability of enterprises. Venture capital institutions funded Intel and Microsoft and other companies are based on the principle of investment, and now to find overseas investment point is to follow this principle.

Chis Searle said: "venture capital is now flowing to China at a fairly rapid pace. This year, the growth rate of funds, especially in the Chinese market investment funds will be in the billions of dollars. Professional investors fancy is not that China can produce products designed by others, but it has some engineering and technical capabilities. In particular, multinational companies in China to build offshore production base is now beginning to produce results. These results not only for the Chinese market, but also for the global. This is the reason for the influx of hot money."

China has the foundation to foster scientific and technological innovation

Chis Searle also said: "overall, the following factors can be seen China foundation of fostering technological innovation: it has famous history, science and technology invention has excellent education system, there are a large number of economic power in the fierce competition environment have price in companies and create their own brand."

Some venture capital investors believe that the U.S. private enterprises and venture capital fund for China to develop knowledge intensive industries, the establishment of emerging technology markets have played an important role in the guidance and support. They expected to China overseas venture capital will soon to trillions of dollars to calculate. These investments will focus on the establishment of R & D centers and the return on investment in technology intensive industries. China will soon become the world's largest sales and consumption of technical products.

The biggest risk is regulatory issues

Silicon Valley Axel venture capital company partner, said Karl Everett, venture capital, also known as venture capital. In China, the operation is worthy of the name of venture capital. He said: in addition to venture capital in China will encounter the general venture capital risk, there will be a lot of other risks and challenges. The biggest risk is regulatory issues." He believes that for some policy changes, foreign investment institutions without recourse is the biggest problem.

He said that the professional investment institutions in the investment process to take into account a lot of problems, we must always consider the government's position and attitude. Some venture investors believe that China is not only interested in foreign funds, but also want to get some of the project's expertise. But Mr Everett said: "before to respect intellectual property rights in the Chinese government and technology sector, to put money in the knowledge intensive industries, in the current investment environment is very risky."