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July 29, 2005
Southeast Asia gears up for chip manufacturing
Southeast Asian countries including Indonesia and Malaysia have launched marketing campaigns designed to attract investors and electronics manufacturers.
Both these countries are portraying themselves as low-cost, hassle-free alternatives to China. Greater respect for intellectual property, lower language barriers and labor costs are key selling points for Malaysia and Indonesia.
Much of Indonesia's effort is focused on the Batam Industrial Trade Authority. Its electronics manufacturing comes from companies based in Singapore seeking to avoid high labor and land costs in the city-state. But leaders of Batam's sprawling industrial parks say they want to reduce their dependence on Singapore, and are seeking investors from India and Japan. Jakarta has funneled millions into infrastructure projects designed to ensure investors that Batam's industrial parks can provide power, broadband network connections and water. But the region is plagued by a history of corruption, fear of terrorism and energy woes.
Malaysia's electronics push is spearheaded by its largest foundry, SilTerra Malaysia Sdn Bhd. SilTerra plays the IP card to the hilt, knowing Western companies are increasingly concerned about the unspoken quid pro quo that access to the Chinese electronics market requires giving away the keys to the store. "We understand the importance of customers' IP and follow the strict industry guidelines," says SilTerra's David Fung. The company claims competitive pricing and quality that match or surpass what China's foundries offer.
Some regional experts predict that Vietnam will also emerge as a player in high-tech markets. The story is told of Vietnamese workers declining overtime to attend night classes. The thinking is that study, not more hours in the sweatshop, provides a better life since it builds the skills for a better job.
Source: EE Times
Posted by admin at July 29, 2005 07:45 AM