Ruminations on the electronics industry from David Manners, Senior Components Editor on Electronics Weekly.
Fable: The Country Which Caught Up
There was once a country which wanted to boost its semiconductor manufacturing prowess.
At the time, the country’s semiconductor manufacturers were paying 10% of their sales in royalties to foreign companies.
So it put tariffs and quotas on semiconductor imports; required importers to license local firms with their technology; required local firms getting licenses to sub-license the technology to other local firms.
The country then organised its six largest semiconductor companies into three pairs and gave each pair $200 million over five years to crank up their capability.
Towards the end of that period the government shelled out another $65 million on a programme to become the leading semiconductor producer in the world.
Moral: Technology catch-up takes time and money.Tags: fable, importers, million over five years, prowess, semiconductor manufacturers