Talking about China market Jerome says: "We have been quite intrigued by the recent success of Galaxy Core in China: together with wafer foundry SMIC, they have been able to ship more than 100 Million image sensors last year, cutting cost by two on the low-end CIS market thanks to an innovative, simplified BEOL architecture. And it is interesting to compare Galaxy Core's recent success to the growth of China's white-box handset market, which now also claims to be over 100 million unbranded Chinese cell-phones every year..."
That is chinese business style. When a technology is mastered, they will try to extract the maximum from this technology by very clever manufacturing costdown. Taiwanese companies are even better on this point. So they can take the buttom of the market pyramid by low price.
ReplyDeleteYes, then they gradually move up the value chain, as they did in TV chips: MediaTek and MStar have crowded out ST/Genesis, Pixelworks, Trident and Zoran.
ReplyDeleteToday, the Taiwan and China sensor makers are way behind OV, Aptina, the Koreans and Japanese. But slowly they will work they way into premium branded devices. Using their cash to acquire the assets and know how to build premium sensors.
fyi - Pixart supplies the sensor in the Nintendo Gameboy 3DS.
When you comtemplate from high of the pyramid, you can have some kind of fear!!!
ReplyDeleteThe R&D cost is higher and higher, the selling price is going lower and lower. The low cost one is becoming more and more performant. All the western companies are in danger and will collape like Wall Street one day. To confirm this, you can simply take a look at the CapExp of these companies!
There is a certain irony in how the Communist Chinese exploit their citizens so that a lot of fat cats can get wealthy. They learned well from the capitalists but have totally betrayed their own ethics.
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