Interpretation ranking: IC design industry is not only paranoid upstart

The recently released China Semiconductor Association "in 2005 China 10 IC design company ranking" of particular concern in the NASDAQ listed Zhuhai actions and Vimicro climb the top two, crowding out those old faces. Among them, Zhuhai actions with sales of 1 billion 257 million 500 thousand yuan won the title, than the 174% growth in 2004; the second is Vimicro, 2005 sales of 767 million 800 thousand yuan, an increase of more than 90%. Among them, Zhuhai actions in February this year has just released earnings report showed that the fourth quarter of 2005 sales reached $41 million, a net profit of $19 million.

Zhuhai fire force and Vimicro success, won the China electronics industry acclaim. But I also heard a similar voice: Zhuhai actions but good luck, catch up with the MP3 market; Zhuhai actions is an upstart, scenery long....... In the eyes of their actions, and those who seem to rented houses in Shenzhen by MP3 processing and earn pours businessmen belonging to the same class.

However, a person familiar with the actions of the China IC design company general manager so retorted: "Zhuhai actions, is not the upstart, this is a full of gambling and full vigor of the company, they dare to invest in the future, did a lot of Kung fu. The design team of Zhuhai fire force has developed a game chip and Ethernet chip and other products, but because it's not the right time to fail. They caught up with the MP3 market, not by chance. Courage, strength and unremitting efforts are necessary for their success."

Dare to invest in the future, for the weak Chinese IC design company, it is a need to be courageous and worthy of respect. President Zhang Shilong said: sgmicro Electronic Co. Ltd. "for those semiconductor giants, they can also have hundreds of product lines and the direction of research and development, but for us, we can only choose one or two directions. We can only succeed, not fail."

However, even if the right direction, can be achieved, is another matter. Beijing double Competitive Technology Co. Ltd. (Sungine Source Science Ltd.) general manager Qu Xiangsheng pointed out that regardless of whether the product market, the design of IC products is often a long and painful process, there is always this or that unexpected problems, due to the lack of experience and lack of resources, is often a a small problem, can make the whole process was delayed for six months or a year. "We never talk about success," he said."

But investors are lack of patience. Industry veteran Mr. Bian Xiaochun said, domestic investors because they do not know the IC design industry rules, mostly in the beginning is too optimistic, not ready for a difficult, once the process problems, various related problems arise.

Visible, Zhuhai fire force and Vimicro success, definitely can not be "upstart" to describe. - strong technical strength and excellent market before Zhan said the reason for the success of their ability as actions on the website. Say simply, is to identify the future direction, and then desperate to achieve it. It is precisely because of this, Zhuhai actions and overseas counterparts simultaneously launched a MP3 chip, Vimicro also launched the industry-leading PC camera chip.

On investment in the future, I very much agree with Mr. Bian Xiaochun's point of view: the development of technology on the road, overseas giants in the front, it is difficult to overstep. Only when technology turns (technological innovation and renewal), there is a chance to go beyond. Therefore, Chinese companies want to break through, we must dare to invest in cutting-edge technology and applications."

He said, can not look at other people to sell what they do, it will fall behind; do what others are doing, is able to keep pace with others; while others are trying to do something, you can go beyond the others.

Zhuhai fire force and Vimicro success, is undoubtedly the best proof of this view. It is precisely because they do not do low-end products (others are selling things), dare to do what others are doing and others are thinking about the product, they have today's success. They're not upstarts, they're pioneers. This is reminiscent of the former chairman of Intel Andy (Andrew S. Grove). As the saying goes: only the paranoid survive (Only the Paranoid Survive).

At present, China's IC design company more than 400, it is said that many companies because of high returns and set foot in the field of IC design. What I want to say is that the IC design field is by no means a place to produce an upstart. Are you really ready?