how does semiconductor technology change us

Semiconductor

change ustechnology

How does

Li WeiTechnology commercialization managerExploit Technologies Pte Ltd (ETPL)Agency for Science, Technology and Research (A*STAR, Singapore)

B. Eng & Ph.d (Engineering)Nanyang Technological University Singapore

Author and presentation by

M.B.A.INSEADFontainebleau, France

Changes usSemiconductor technology

It changesAs the basic technology in every electronics product

Our life

With hundreds of thousands of high-tech jobs brought by its manufacturing industry,

It changesEconomy

The change happened in

Taiwan2014 Semiconductor

industry revenue~US$65 billion

The change happened in

Korea2014 Semiconductorindustry revenue~US$50 billion

SingaporeThe change happened in

2014 Semiconductorindustry revenue

~US$25 billion

than that

changed is

moreWhat it

Different countries have

Different

semiconductor industry

strategiesto develop

The strategies createddifferent companies and

Culture in the industry

It changed themindsetOf the engineers

What strategy did they use?

Singapore Korea Taiwan

Multinational corporation

Conglomerate(Chaebol)

Here are The key words of their strategies

Tech transfer & spin-off

Multinational corporation is the bedrock of semiconductor industry development strategy

Singapore

Singapore anchorsmultinational corporation activities and create local economic impact

Local Firm

Local Firm Local Firm Local FirmLocal Firm

Jobs

Jobs

JobsJobs

Jobs

Multinational corporation (mnc)

Government incentives

Joint R&D and funding

Highly educated talent pool

Supportive infrastructure

Singapore

In Korea

Korea uses its giant industrial conglomeratesto leap into semiconductor industry

At the right time

Chose the right product

Played with strength

Semiconductor Trade War Between Japan

and US in 1986

Capital IntensiveShort lifecycle

Continuous Price reduction

right time right product Their strength

Memory chipUS vs JP Big, real bigFinancial capacities

Production competencyDiversified business

Their competitors were weakened

A costly and risky product è high

entry barrier

they were the right player to take the

risk

In Korea

In Taiwan

Taiwanese research institute transferred the technology from us company

Technology

The spin-offs from the research institutes created Taiwan semiconductor industry

In Taiwan

These are strategies implemented more than

20 years ago

To create new jobs andopportunities, we need

entrepreneur

today

entrepreneurTo lead ventureprojects insidecorporations

To createstart-up in

the new fieldsOR

entrepreneurshipWe need engineers with

And are willing to takerisk and try new things

Can we find them fromsemiconductor industry?

Singapore

Multinational corporations have theirMost advanced technology development

in home countries

home countries

Singapore

They Locate Manufacturing orless critical projects in Singapore

home countries

I focus on and only dowhat I am paid for

Singapore

home countries

Singapore

Less sensitive to newopportunities andno much motivation fornew ventures

SingaporeSemiconductor

engineer

In KoreaThe conglomerates have theirdominating presence in everysector of semiconductor industry

My start-up has to dealwith the big guys everywhere

In Korea They have tendency to focuson recruiting engineers with innovative ideas from suppliers or rivals

The Key engineer of my start-up just joined S Company

In Korea

the recognized career in Koreais to join the ranks of bigcorporation

My girlfriend asks meto find a real job

In Korea

KoreaSemiconductor

engineer

Less space for start-ups, social pressure, risk adverse

In Taiwan

Spun-off: 1980Revenue: us$4.1 b

Spun-off: 1987Revenue: us$20 b

Spun-off: 1997Revenue: US$4.5 b

Data: Wikipedia, 2013

ITRI (industrial technologyresearch institute) is theorigin of successful storiesof Taiwanese semiconductorcompanies

ITRI

In Taiwan

196 Spin-offs from itri since 1996

196 21 IP0

10% IPO rateITRIThe

successcontinues

…

In Taiwan

The successstories

The network inthe industry

Inspiration informationResourceExperience

In Taiwan

TaiwanSemiconductor

engineer

desired for newopportunities and moreentrepreneurial

summaryThe semiconductor industry development influenced the

entrepreneur spirit of the engineers

Less motivated Risk Adverse entrepreneurial

Multinationalcorporation

Conglomerates(Chaebol)

Tech Transfer /Spin-off

[1] Gregory Curley, “South Korea‘s Startup Culture Marred By Misguided Ambitions”, Forbes, 2015[2] Ike Lee, “Singapore‘s entrepreneurship X factor”, Straits Time, 2015[3] ITRI annual report 2015[4] W. Shih, J.C. Wang, “Upgrading the Economy- Industrial Policy and Taiwan‘s Semiconductor Industry”, HarvardBusiness Review, case study, Dec 2010[5] John A. Mathews, “ A Silicon Island of the East – Creating a Semiconductor Industry in Singapore”, CaliforniaManagement Review, 1999, Vol. 41, No 2.[6] Daniel Jung, “A New Context for Technological Development”, Stanford Journal of East Asian Affairs 5(2), 49-58

Reference:

www.innodiary.org

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