U.S. chip industry is facing a sharp contrast with China

US technology industry investment seems to have lost interest in the chip industry. In stark contrast, China's chip industry is experiencing rapid development. With the support of the global manufacturing center of the semiconductor chip, China is playing an increasingly important role in the design and innovation of the chip. At present, venture capitalists are investing heavily in social networks, e-commerce and online games, and the chip industry has been no longer the prestige, investment in the field is close to 12 years low. Silicon crystal as the main material of the semiconductor chip has become the current market, personal computers, mobile phones and even nuclear warheads and many other core products of the brain center. However, the huge upfront investment in the manufacture of chips, often discouraged investors. Before the launch of the chip, chip manufacturers often spend millions of dollars to develop and test the chip. This part of the research and testing costs have forced a number of domestic chip companies to shift their manufacturing plants to other countries that offer tax breaks and subsidies in order to save costs. At the same time, due to the relatively low cost of network based programs and services, so the establishment of software and Internet companies to invest in a substantial decline in costs. The chip industry should sooner the National Venture Capital Association (National Venture Capital Association, NVCA) released data show that the first nine months of this year's chip business venture capital financing has a total of $1 billion 390 million from the same period in 2008 declined to $894 million 900 thousand, a drop of 36%. and the 2009 National chip enterprise risk capital financing amount is only the $863 million 800 thousand, the lowest level since 1998. NVCA statistics also show that, as of now this year, the first venture financing chip companies accounted for only 1.1% of the total amount of the initial financing, the industry has become the smallest proportion of NVCA tracking industry within the 16 sector. The software companies to 17% of the proportion of the first venture capital accounted for the top position of the NVCA tracking industry. Over the past two years, venture capitalists and other investors into the social networking industry Facebook and Twitter, online game maker Zynga and buy site Groupon crazy into hundreds of millions of dollars in investment. The market value of these companies have reached or exceeded $one billion. The chip industry investment attraction also lost, the market quickly emerged in a class called "super angels" group of investors, they only focus on investment, to the early start of the Internet enterprises at present, a building designed in accordance with the world's top standard chip factories will cost more than $4 billion, and the best period is only about five years. Chip industry is a high investment trend infeasible chip company MaxLinear CEO Kishore Seendripu said: the U.S. chip industry high input, slow return trend is not feasible. "The company is one of the five listed companies in the past two years. Most American chip companies have even abandoned their own research and development of their own chips, instead of manufacturing tasks will be outsourced to China's chip foundry production. According to the U.S. semiconductor equipment and Materials Association (Semiconductor Equipment and Materials International, SEMI) report released in Taiwan as early as 2005 in the field of chip production beyond the United States, and since then has been to consolidate its leading position in the field. The demand for electronic devices is a huge change in the market demand for chips, and investors are very cautious about investing in the chip industry. Seendripu said the volatile demand in the chip industry means that a chip companies want to finance must be profitable, and has a large customer as a support. Venture capital institutions Tallwood Capital investors Venture Dado Banatao said he hoped to become an investment chip industry "final warrior". The old investors with 37 years of industry experience served as the National Semiconductor Engineering Supervisor, and in the search for the great rise has more than and 10 years of rich experience in investment China Association of lighting LED lighting portal the potential value of early-stage companies. In the past five years, Banatao has been encouraging its companies to expand overseas, especially in the Chinese market, in order to make full use of government support policies and low production cost advantage. The 64 year old Banatao recently in California company is located in Palo Artaud headquarters in an interview with reporters said: "we are accustomed to in the Silicon Valley in the establishment of technology companies, but the scale of the development of the company gradually expanded until we realize the tremendous opportunities to develop foreign market development of the company. From the moment we raised funds, we have been considering the possibility of expanding the international market. From the beginning of 2009 to date, the number of Chinese chip companies IPO far more than the same period the number of U.S. chip companies. The semiconductor industry association (Semiconductor Industry Association) released statistics show that the Asian market promotes the growth of the global chip industry sales revenue growth this year, according to estimates of the global chip industry sales revenue grew 33% to $about 300000000000. Brian Toussie, President of the American Semiconductor Industry Association (Brian Toohey), said: the U.S. chip industry has grown very mature, and its cost is huge. The future competition in the industry will be very intense. "