Chinese IC equipment startups grow up in 2 ways
EETimes recently reported Chinese chip-equipment startup Advanced Micro-Fabrication Equipment Inc. (AMEC) raised $35M in series B. it's a very amazing thing for chinese IC equipment industry. actually there are other equipment startups in china. some even perform better than AMEC currently. Beijing zhongkexin electronic equipment Co. (zhongkexin) completed ion implanter prototype for 100nm node, and Beijing north micorelectronics co.(NMC) sccuceeded in testing 100nm etch equipment in SMIC's 8 inch fab. 2 companies have got the orders from SMIC. why only AMEC got the famous VCs' interest like walden international and Goldman Sachs? I think there are following reasons:
1) government power:
zhongkexin and NMC are builded for national 863 project. they are invested by government and their research teams are from chinese famous university and institutes like CAS etc. so if they accept other VC's investment, VC can't dominate the company growth direction and speed. what's more, VC's liquidation right will be limited due to government's interference. all of these will not happen on AMEC. from the 1st round investment, international VCs has entered, and no any government administration factor in AMEC.
2) company executive team:
AMEC is founded by some senior managers from applied materials. they have enough experiences to manage an IC equipment startup. in addition, AMEC has core IPs. they claimed they have more than 200 US patents. now they startuped in china and enjoy the low labor cost and government's supporting policies. all of these factors are VC's favorite. why not invest?? but for zhongkexin and NMC, they don't have such advantages.
although these chinese IC equipment startups are growing in 2 different ways, I still worry about their future:
1) for AMEC: I guess it will be acquired by giant company because VC dominates its way.
2) for zhongkexin and NMC: need be fledged as fast as possible, otherwise it's hard for them to compete with applied materials, TEL, varian and axcelis. the beautiful future of IC industry in china are the biggest advantage for them, but globalization and supporting industry like precision parts and electronic material industry will bring them to the edge of live or death.
good luck, chinese IC industry.
Written by Keanu Zhang - Visit WebsiteRelated posts: No Related Posts
