Silicon Valley model may not be suitable for local start-up companies

&http://www.aliyun.com/zixun/aggregation/37954.html ">nbsp; The so-called Silicon Valley IC business model generally contains three stages, one, to obtain VC to the creative and team recognition, the general integrated circuit design entrepreneurial team can get 1.005 billion of dollars of start-up capital entrepreneurship; second, after the completion of product development, the start-up companies will be two times financing, The amount is generally used in 50.02 billion U.S. dollars for product promotion; When a technology or product acquires market recognition, startups typically choose to direct IPOs or be acquired by well-known multinationals, and successful Silicon Valley startups typically experience these three stages.

Unlike the Silicon Valley model, integrated circuits in China for decades, only listed in the Chinese star Micro, the exhibition and Zhuhai Torch Force, can be acquired by multinational companies few cases, a decade ago, the new technology was IDT to buy 85 million U.S. dollars and Shanghai Palm Micro was SIRF 125 million U.S. dollar acquisition, few success, In fact, these two can not be regarded as local start-up companies, headquarters are in Silicon Valley, the main operations are located in the United States, China has only a part of research and development, and even the sale of products are mainly overseas.

Silicon Valley entrepreneurship aims at core technology, can be acquired by multinational companies are normal, domestic integrated circuit design companies are aiming at the market demand, as to whether the technology leader is often not the most concerned about the entrepreneur, so the local companies in the technical aspects of entrepreneurship is difficult to attract the attention of multinational companies, once the market, the value of the acquisition is zero, In China's integrated circuit design industry is also a small number of mergers and acquisitions because of this reason, because China's integrated circuit design companies have 500 of many, many people are expected to see the future mergers and acquisitions, the old Yao but think it is very difficult to close the tide is very likely, really have cutting-edge core technology in China IC

No cutting-edge core technology can not prevent the rise of local IC design companies, after all, as the world's largest electronic product manufacturing base, the Chinese electronic market for different types of different levels of integrated circuit demand is very strong, only to develop the products to meet market demand, Even without the highest end of the technology native IC design companies can do very well, and based on this, many venture capitalists think China is the last fertile ground for integrated circuit investment.

With the Silicon Valley venture as soon as possible to develop cutting-edge technology, local integrated circuit start-up companies should be the biggest goal is to make money as soon as possible, regardless of high-end products, whether or not to represent High-tech, only as soon as possible to achieve business income, to establish close relationship with customers, better grasp the pulse of the market, At present, many of China's local integrated circuit design companies are dependent on China's mature electronic manufacturing industry to survive, although the product quality and multinational companies a slight gap, better performance price ratio is the fundamental competition, the development of local integrated circuit design industry, in turn, has contributed to the progress of Chinese manufacturing, to create cheaper, More functional electronic products, it should be said that the current China's domestic integrated circuit design industry and electronic manufacturing has formed a good interaction and interdependence of symbiotic relations, mobile phones are popular, MTK is the credit to Wei, China's domestic integrated circuit design industry in the cost of contribution to do the same can not be belittled, At present, the local IC has been in the FM, camera, Bluetooth, power management, audio amplification period, amplifier, analog TV and even batteries and other components have replaced or are replacing multinational companies to become mainstream suppliers. Other audio chips such as toys dominate the world.

It should be said that local IC relies more on market than technology, this is the biggest difference between the local IC start-up company and the Silicon Valley business, based on the local entrepreneur to pay more attention to the market and profitability, and because of this, the local integrated circuit design companies are bought prices will be very low, and computer, television competition in the field of the pattern is not much different.

Although the entrepreneurial phase of the local and Silicon Valley is a big difference, if you want to become a great company, the two are the same, after all, like Lenovo's "trade and industry technology" and Huawei's "technology and Trade" difference, with the market Lenovo can further expand the core technology, which is the development of local IC shortcut, Huawei, with its core technology, is further expanding its market, which is the home of Silicon Valley entrepreneurship, but it is another matter if startups cannot survive in the end. (Author: Lao Yao)

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